Document:

Promissory Note

Exhibit 10.28

 

PROMISSORY NOTE

 

February 15, 2002

 

Altris

Software, Inc. a California corporation (“Altris”), having an address for

notices at 9339 Carroll Park Drive, San Diego, California 92121, hereby

acknowledges that as of December 22, 

2001 it had received funds totaling $1,235,076 (the “Initial Funds”)

from Spescom Limited, a South Africa corporation (“Spescom”), having an address

for notices at P.O box 288, Halfway House 1685 Midrand, South Africa.  In consideration of Spescom advancing the

Initial Funds to Altris and the advancement of any additional funds(the “New

Funds” and collectively with the Initial Funds, the “Loan”) by Spescom to

Altris on even date herewith,  Altris

promises to repay the Loan to Spescom plus any accrued interest in accordance

with the terms set forth below:

 

1.             Payments and Interest.  The Loan shall accrue interest at the rate

of 10% per annum from the date the Loan, or portion thereof, was advanced to

Altris by Spescom.  All unpaid principal

and accrued interest under this Note shall be due and payable on October 15,

2003 (“Due Date”) unless extended by mutual written consent of  Altris and Spescom. 

 

2.             Manner of Payments.  All payments by Altris under the Loan shall

be (a) made in lawful money of the United States of America without set-off,

deduction or counterclaim of any kind whatsoever, (b) credited first to amount

for late charges, if any, second to any accrued interest under the Loan and

finally to the principal balance under the Loan, and (c) deemed paid by Altris upon

their actual receipt by Spescom. 

Interest for any period less than one year shall be calculated on the

basis of 1/360th of one year’s interest multiplied by the number of

days during such period.

 

3.             Interest on Interest.  All interest under the Loan shall, from its

Due Date until it is paid, bear interest at the interest rate set forth above.

 

4.             Security Interest.  This Note is subject to the terms of a

Security Agreement, dated as of February 15, 2002 by and among Altris, Spescom

and Spescom Limited, a United Kingdom corporation (the “Security Agreement”)

and is subject to all the provisions thereof, and is secured by a continuing

security interest in the Collateral (as defined in the Security

Agreement).  Notwithstanding the

foregoing, Spescom shall have full recourse against Altris, and shall not be

required to proceed against the Collateral in an Event of Default (as defined

below).

 

5.             Late Charge.  If any amount of interest and/or principal

under the Loan is not received by Spescom within 15 days after its Due Date,

then, without any requirement for notice to Altris, Altris shall immediately

pay to Spescom as a late charge an additional sum of 5% per annum of such

overdue amount from the Due 

 

 

Date until the

date of payment.  Such late charge represents

a fair and reasonable estimate of the costs that Spescom will incur by reason

of any late payment by Altris. 

Acceptance of such late charge by Spescom shall not constitute a waiver

of Altris’ default with respect to such overdue amount, nor prevent Spescom

from exercising any of the other rights and remedies available to Spescom under

this Note.

 

6.             Acceleration.  All unpaid principal and accrued interest

under this Note shall, at Spescom's election, be immediately due and payable

upon the occurrence of any of the following events, any of which shall

constitute a default (“Event of Default”) under this Note.

 

6.1                                 If

any amount due under this Note is not received by Spescom when due.

 

6.2                                 The

occurrence of an Event of Default (as defined in the Security Agreement).

 

7.             Commercial Purposes.  Altris acknowledges that the Loan is

obtained for business or commercial purposes and that the Loan will not be used

primarily for personal, family, household or agricultural purposes.

 

8.             Loan Waivers.  To the extent permitted by applicable law,

Altris waives presentment, demand, protest, notice of demand and dishonor.

 

9.             Prepayment Without Penalty.  This Note may be prepaid in whole or in part

at any time without penalty.

 

10.           Interest Limitation.  It is not intended by any provision of this

Note to charge interest at a rate in excess of the maximum rate of interest

permitted to be charged to Altris under applicable law on a cumulative

basis.  If by mistake or error, interest

in excess of such maximum rate shall be paid for any period, the excess amount

shall, if permitted by applicable law, be retained by Spescom as Collateral (as

defined in the Security Agreement) to be held without interest or trust and

commingled with other assets of Spescom or, if not permitted to be so held by

Spescom, shall be refunded to Altris. 

Such interest or premium (“Interest Shortage”) shall, if permitted by

applicable law, be added to the interest earned or to be earned for prior or

subsequent periods during the term of the Loan so that, to the extent permitted

by applicable law on a cumulative basis over the life of the Loan, Spescom may

collect all of the interest and premium provided for in the Loan, the same to

be accomplished in the following manner, or otherwise as permitted by

applicable law:  (a) if Spescom were

permitted by applicable law to charge interest to Altris in such prior periods

in excess of the amount of interest and premium actually charged during such

prior periods, then the interest due on the Loan for such prior periods shall

automatically be increased by the amount of such Interest Shortage, but not in

excess of the maximum interest permitted to be 

 

2

 

charged to

Altris during such prior periods, and excess of the maximum interest permitted

to be charged to Altris during such prior periods, and such increased interest

for such prior periods shall be immediately due an payable upon such demand;

and (b) if Spescom shall have collected all interest permitted by applicable

law to charge interest to Altris in such subsequent periods in excess of the

amount of interest and premium actually charged during such subsequent periods,

the interest due on the Loan for such subsequent periods shall automatically be

increased by the amount of such Interest Shortage, but not in excess of the

maximum interest permitted to be charged to Altris during such subsequent

period, and such increased interest for such subsequent  periods shall be due and payable at the end

of each such subsequent period upon demand.

 

11.           Governing Law.  This Note shall be governed by and construed

in accordance with the laws of the State of California.

 

12.           Further Assurances.  Each party to this Note shall execute

all  instruments and documents and take

all actions as may be reasonably required to effectuate this Note.

 

13.           Venue and Jurisdiction.  For purposes of venue and jurisdiction, this

Note shall be deemed made and to be performed in the City of San Diego,

California.

 

14.           Time of Essence.  Time and strict and punctual performance are

of the essence with respect to each provision of this Note.

 

15.           Attorney’s Fees.  In the event any litigation, arbitration,

mediation, or other proceeding (“Proceeding”) is initiated by any party(ies)

against any other party(ies) to enforce, interpret or otherwise obtain judicial

or quasi-judicial relief in connection with this Note, the prevailing

party(ies) in such Proceeding shall be entitled to recover from the

unsuccessful party(ies) all costs, expenses, actual attorney’s and expert

witness fees, relating to or arising out of (a) such Proceeding (whether or not

such Proceeding proceeds to judgment), and (b) any post-judgment or post-award

proceeding including without limitation one to enforce any judgment or award

resulting from any such Proceeding.  Any

such judgment or award shall contain a specific provision for the recovery of

all such subsequently incurred costs, expenses, actual attorney’s and expert

witness fees.

 

16.           Modification.  This Note may be modified only by a contract

in writing executed by the party(ies) to this Note against whom enforcement of

such modification is sought.

 

17.           Headings.  The headings of the paragraphs of this Note

have been included only for convenience, and shall not be deemed in any manner

to modify or limit any of the provisions of this Note, or be used in any manner

in the interpretation of this Note.

 

3

 

18.           Prior Understandings.  This Note and the Security Agreement contain

the entire agreement between the parties to this Note with respect to the

subject matter of this Note, are intended as a final expression of such

parties’ agreement with respect to such terms as are included in this Note, are

intended as complete and exclusive statements of the terms of this Note, and

supersedes all negotiations, stipulations, understandings, agreements,

representations and warranties, if any, with respect to such subject matter,

which precede or accompany the execution of this Note.

 

19.           Partial Invalidity.  Each provision of this Note shall be valid

and enforceable to the fullest extent permitted by law.  If any provision of this Note or the

application of such provision to any person or circumstance shall, to any

extent, be invalid or unenforceable, the remainder of this Note, or the

application of such provision to persons or circumstances other than those as

to which it is held invalid or unenforceable, shall not be affected by such

invalidity or unenforceability, unless such provision or such application of

such provision is essential to this Note.

 

20.           Notices.  All notices or other communications required

or permitted to be given to a party to this Note shall be in writing an shall

be personally delivered, sent by certified mail, postage prepaid, return

receipt requested, or sent by an overnight express courier service that

provides written confirmation of delivery, to such party at its address as set

forth above in the introductory paragraph of this Note.  Each such notice or other communication

shall be deemed given, delivered and received upon its actual receipt, except

that if it sent by mail in accordance with this paragraph, then it shall be

deemed given, delivered and received three days after the date such notice or

other communication is deposited with the United States Postal Service in

accordance with this paragraph.  Any

party to this Note may give a notice of a change of its address to the other

party to this Note.

 

21.           Waiver.  Any waiver of a default under the this Note

must be in writing and shall not be a waiver of any other default concerning

the same or any other provision of this Note. 

No delay or omission in the exercise of any right or remedy shall impair

such right or remedy or be construed as a waiver.  A consent to or approval of any act shall not be deemed to waive

or render unnecessary consent to or approval of any act shall not be deemed to

waive or render unnecessary consent to or approval of any other or subsequent

act.

 

22.           Drafting Ambiguities.  Each party to this Note has reviewed and

revised this Note.  Each party to this

Note has had the opportunity to have such party’s legal counsel review and

revise this Note.  Altris acknowledges

that this Note has been prepared by Solomon Ward Seidenwurm & Smith, LLP

(“SWSS”) which represents only Spescom with respect to this Note and all

related matters, that it is not being represented by SWSS in relation to this

Note and related matters and that it has been advised to retain its own legal

counsel. The rule of construction that ambiguities are to be resolved against

the drafting party or in favor of the 

 

4

 

party

receiving a particular benefit under an agreement may not be employed in the

interpretation of this Note or of any amendments to this Note.

 

	

  ALTRIS:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ALTRIS SOFTWARE, IN.,

  	

   

  	

   

  	

   

  
	

  a California corporation

  	

   

  	

   

  	

   

  
	

   

  
	

   

  
	

  By:

  	

   

  	

  /s/John W. Low

  	

   

  
	

   

  	

   

  	

  John W. Low

  	

   

  
	

   

  	

   

  	

  Chief Financial Officer

  	

   

  
									

 

5Promissory Note

Exhibit 10.29

 

PROMISSORY NOTE

 

February

15, 2002

 

Altris Software, Inc. a

California corporation (“Altris”), having an address for notices at 9339

Carroll Park Drive, San Diego, California 92121, hereby acknowledges that as of

December 22, 2001 it received funds totaling $1,810,383 (the “Loan”) from

Spescom Limited, a United Kingdom corporation (“Spescom UK”), having an address

for notices at 53-55 Uxbridge Road, Ealing, London, England W5 5SA.  In consideration of Spescom UK advancing the

Loan to Altris,  Altris promises to

repay the Loan to Spescom UK plus any accrued interest in accordance with the

terms set forth below:

 

1.             Payments and Interest.  The Loan shall accrue interest at the rate of 10% per annum from

the date the Loan, or portion thereof, was advanced to Altris by Spescom

UK.  All unpaid principal and accrued

interest under this Note shall be due and payable on October 15, 2003 (“Due

Date”) unless extended by mutual written consent of  Altris and Spescom UK.

 

2.             Manner of Payments.  All payments by Altris under the Loan shall be (a) made in lawful

money of the United States of America without set-off, deduction or

counterclaim of any kind whatsoever, (b) credited first to amount for late

charges, if any, second to any accrued interest under the Loan and finally to

the principal balance under the Loan, and (c) deemed paid by Altris upon their

actual receipt by Spescom UK.  Interest

for any period less than one year shall be calculated on the basis of 1/360th

of one year’s interest multiplied by the number of days during such period.

 

3.             Interest on Interest.  All interest under the Loan shall, from its Due Date until it is

paid, bear interest at the interest rate set forth above.

 

4.             Security Interest.  This Note is subject to the terms of a Security Agreement, dated

as of February 15, 2002 by and among Altris, Spescom Limited, a South African

corporation and Spescom UK (the “Security Agreement”) and is subject to all the

provisions thereof, and is secured by a continuing security interest in the Collateral

(as defined in the Security Agreement). 

Notwithstanding the foregoing, Spescom UK shall have full recourse

against Altris, and shall not be required to proceed against the Collateral in

an Event of Default (as defined below).

 

5.             Late Charge. 

If any amount of interest and/or principal under the Loan is not

received by Spescom UK within 15 days after its Due Date, then, without any

requirement for notice to Altris, Altris shall immediately pay to Spescom UK as

a late charge an additional sum of 5% per annum of such overdue amount from the

Due Date until the date of payment. 

Such late charge represents a fair and reasonable estimate of the costs

that Spescom UK will incur by reason of any late 

 

 

payment by Altris.  Acceptance of such late charge by Spescom UK

shall not constitute a waiver of Altris’ default with respect to such overdue

amount, nor prevent Spescom UK from exercising any of the other rights and

remedies available to Spescom UK under this Note.

 

6.             Acceleration. 

All unpaid principal and accrued interest under this Note shall, at

Spescom UK’s election, be immediately due and payable upon the occurrence of

any of the following events, any of which shall constitute a default (“Event of

Default”) under this Note.

 

6.1           If any amount due under this Note is not received by

Spescom UK when due.

 

6.2           The occurrence of an Event of Default (as defined in the

Security Agreement).

 

7.             Commercial Purposes.  Altris acknowledges that the Loan is obtained for business or

commercial purposes and that the Loan will not be used primarily for personal,

family, household or agricultural purposes.

 

8.             Loan Waivers. 

To the extent permitted by applicable law, Altris waives presentment,

demand, protest, notice of demand and dishonor.

 

9.             Prepayment Without Penalty.  This Note may be prepaid in whole or in part

at any time without penalty.

 

10.           Interest Limitation.  It is not intended by any provision of this Note to charge

interest at a rate in excess of the maximum rate of interest permitted to be

charged to Altris under applicable law on a cumulative basis.  If by mistake or error, interest in excess

of such maximum rate shall be paid for any period, the excess amount shall, if

permitted by applicable law, be retained by Spescom UK as Collateral (as

defined in the Security Agreement) to be held without interest or trust and

commingled with other assets of Spescom UK or, if not permitted to be so held

by Spescom UK, shall be refunded to Altris. 

Such interest or premium (“Interest Shortage”) shall, if permitted by

applicable law, be added to the interest earned or to be earned for prior or

subsequent periods during the term of the Loan so that, to the extent permitted

by applicable law on a cumulative basis over the life of the Loan, Spescom UK

may collect all of the interest and premium provided for in the Loan, the same

to be accomplished in the following manner, or otherwise as permitted by

applicable law:  (a) if Spescom UK were

permitted by applicable law to charge interest to Altris in such prior periods in

excess of the amount of interest and premium actually charged during such prior

periods, then the interest due on the Loan for such prior periods shall

automatically be increased by the amount of such Interest Shortage, but not in

excess of the maximum interest permitted to be charged to Altris during such 

 

2

 

prior periods, and excess of

the maximum interest permitted to be charged to Altris during such prior

periods, and such increased interest for such prior periods shall be

immediately due an payable upon such demand; and (b) if Spescom UK shall have

collected all interest permitted by applicable law to charge interest to Altris

in such subsequent periods in excess of the amount of interest and premium

actually charged during such subsequent periods, the interest due on the Loan

for such subsequent periods shall automatically be increased by the amount of

such Interest Shortage, but not in excess of the maximum interest permitted to

be charged to Altris during such subsequent period, and such increased interest

for such subsequent  periods shall be

due and payable at the end of each such subsequent period upon demand.

 

11.           Governing Law. 

This Note shall be governed by and construed in accordance with the laws

of the State of California.

 

12.           Further Assurances.  Each party to this Note shall execute all  instruments and documents and take all

actions as may be reasonably required to effectuate this Note.

 

13.           Venue and Jurisdiction.  For purposes of venue and jurisdiction, this Note shall be deemed

made and to be performed in the City of San Diego, California.

 

14.           Time of Essence. 

Time and strict and punctual performance are of the essence with respect

to each provision of this Note.

 

15.           Attorney’s Fees. 

In the event any litigation, arbitration, mediation, or other proceeding

(“Proceeding”) is initiated by any party(ies) against any other party(ies) to

enforce, interpret or otherwise obtain judicial or quasi-judicial relief in

connection with this Note, the prevailing party(ies) in such Proceeding shall

be entitled to recover from the unsuccessful party(ies) all costs, expenses,

actual attorney’s and expert witness fees, relating to or arising out of (a)

such Proceeding (whether or not such Proceeding proceeds to judgment), and (b)

any post-judgment or post-award proceeding including without limitation one to

enforce any judgment or award resulting from any such Proceeding.  Any such judgment or award shall contain a

specific provision for the recovery of all such subsequently incurred costs,

expenses, actual attorney’s and expert witness fees.

 

16.           Modification. 

This Note may be modified only by a contract in writing executed by the

party(ies) to this Note against whom enforcement of such modification is

sought.

 

17.           Headings. 

The headings of the paragraphs of this Note have been included only for

convenience, and shall not be deemed in any manner to modify or limit any of

the provisions of this Note, or be used in any manner in the interpretation of

this Note.

 

3

 

18.           Prior Understandings.  This Note and the Security Agreement contain the entire agreement

between the parties to this Note with respect to the subject matter of this

Note, are intended as a final expression of such parties’ agreement with

respect to such terms as are included in this Note, are intended as complete

and exclusive statements of the terms of this Note, and supersedes all

negotiations, stipulations, understandings, agreements, representations and

warranties, if any, with respect to such subject matter, which precede or

accompany the execution of this Note.

 

19.           Partial Invalidity.  Each provision of this Note shall be valid and enforceable to the

fullest extent permitted by law.  If any

provision of this Note or the application of such provision to any person or

circumstance shall, to any extent, be invalid or unenforceable, the remainder

of this Note, or the application of such provision to persons or circumstances

other than those as to which it is held invalid or unenforceable, shall not be

affected by such invalidity or unenforceability, unless such provision or such

application of such provision is essential to this Note.

 

20.           Notices. 

All notices or other communications required or permitted to be given to

a party to this Note shall be in writing an shall be personally delivered, sent

by certified mail, postage prepaid, return receipt requested, or sent by an

overnight express courier service that provides written confirmation of

delivery, to such party at its address as set forth above in the introductory

paragraph of this Note.  Each such

notice or other communication shall be deemed given, delivered and received

upon its actual receipt, except that if it sent by mail in accordance with this

paragraph, then it shall be deemed given, delivered and received three days

after the date such notice or other communication is deposited with the United

States Postal Service in accordance with this paragraph.  Any party to this Note may give a notice of

a change of its address to the other party to this Note.

 

21.           Waiver.  Any

waiver of a default under the this Note must be in writing and shall not be a

waiver of any other default concerning the same or any other provision of this

Note.  No delay or omission in the

exercise of any right or remedy shall impair such right or remedy or be

construed as a waiver.  A consent to or

approval of any act shall not be deemed to waive or render unnecessary consent

to or approval of any act shall not be deemed to waive or render unnecessary

consent to or approval of any other or subsequent act.

 

22.           Drafting Ambiguities.  Each party to this Note has reviewed and revised this Note.  Each party to this Note has had the

opportunity to have such party’s legal counsel review and revise this

Note.  Altris acknowledges that this

Note has been prepared by Solomon Ward Seidenwurm & Smith, LLP (“SWSS”)

which represents only Spescom UK with respect to this Note and all related

matters, that it is not being represented by SWSS in relation to this Note and

related matters and that it has been advised to retain its own legal counsel.

The rule of construction that ambiguities are to be resolved against the

drafting party or in 

 

4

 

favor of the party receiving

a particular benefit under an agreement may not be employed in the

interpretation of this Note or of any amendments to this Note.

 

	

  ALTRIS:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ALTRIS SOFTWARE, IN.,

  	

   

  	

   

  	

   

  
	

  a California corporation

  	

   

  	

   

  	

   

  
	

   

  
	

   

  
	

  By:

  	

   

  	

  /s/John W. Low

  	

   

  
	

   

  	

   

  	

  John W. Low

  	

   

  
	

   

  	

   

  	

  Chief Financial Officer

  	

   

  
									

 

5

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