Document:

exv10w19

Exhibit 10.19

BCInet, Inc.

SECURED PROMISSORY NOTE

	 	 	 	 	 
	 
	 	     Loan Amount: 	 	$170,000.00
	 
	 	    Interest Rate:	 	1% per year
	 
	 	Date of Loan:    	 	August 31, 2009

          For value received, BCInet, Inc., a Delaware corporation (the “Borrower”), promises
to pay to OCZ Technology Group, Inc., a Delaware corporation (the “Lender”), or the
Lender’s assignees, the principal sum of $170,000.00 together with interest upon the terms and
conditions set forth in this Secured Promissory Note (the “Note”).

1. Term. The entire principal balance of this Note, together with all accrued and unpaid
interest thereon, shall be due and payable two (2) years from the date of this Note.

2. Interest. Interest on the outstanding principal balance under this Note shall accrue at
the rate of 1% per year.

3. Prepayment. Prepayment of principal and interest may be made at any time without
penalty.

4. Security. The loan evidenced by this Note and the obligations of the Borrower hereunder
are secured by a pledge of all of the assets of the Borrower pursuant to the terms and conditions
of that certain Security Agreement, dated on the date hereof between the Borrower and Lender, in
the form attached hereto as Exhibit A (the “Security Agreement”).

5. Acceleration of Due Date. The entire unpaid principal balance of this Note, together
with all accrued and unpaid interest thereon, shall, at the election of the Lender, become
immediately due and payable upon the occurrence of any of the following, irrespective of the
payment date set forth in Paragraph 1 of this Note:

	 	(a)	 	If at any time the Borrower shall admit in writing its inability to pay debts
as they become due, or shall make any assignment for the benefit of any creditors, or
shall file a petition seeking any reorganization, arrangement, liquidation, dissolution
or composition, readjustment or similar release under any present or future statute,
law or regulation, or on the filing or commencement of any petition, action, case or
proceeding, voluntary or involuntary, under any state or federal law regarding
bankruptcy or insolvency.
	 
	 	(b)	 	Borrower is in material breach of the terms of the Security Agreement or this
Note.

6. Collection Costs Borne by Borrower. If action is instituted to collect this Note, the
Borrower agrees to pay all costs and expenses, including without limitation reasonable attorneys’
fees, incurred in connection with such action.

BCInet – Secured Promissory Note (Other Assets)

1

 

7. Waiver. No delay or omission on the part of the Lender in exercising any right under
this Note or any other security agreement given to secure this Note shall operate as a waiver of
such right or of any other right under this Note. Any waiver of any term of this Note must be made
in writing and signed by a duly authorized officer of the Lender. The Borrower hereby waives
presentment for payment, demand, notice of demand and of dishonor and nonpayment of this Note,
notice of intention to accelerate the maturity of this Note, protest and notice of protest,
diligence in collecting, and the bringing of suit against any other party.

8. Maximum Interest Payable. All agreements between the Borrower and the Lender, whether
now existing or subsequently arising and whether written or oral, are limited so that in no
contingency, whether by reason of acceleration of the maturity of the Note or otherwise, shall the
interest contracted for, charged, received, paid or agreed to be paid to the Lender exceed the
maximum amount permissible under applicable law. If, for any reason, interest would otherwise be
payable to the Lender in excess of the maximum lawful amount, the interest payable to the Lender
shall be reduced to the maximum amount permitted under applicable law; and if for any reason the
Lender shall ever receive anything of value deemed interest by applicable law in excess of the
maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction
of the principal under this Note and not to the payment of interest, or if such excessive interest
exceeds the unpaid balance of principal under the Note, such excess shall be refunded to the
Borrower. All interest paid or agreed to be paid to the Lender shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the full period until
payment in full of the principal (including the period of any renewal or extension) so that the
interest for such full period shall not exceed the maximum amount permitted by applicable law.
This paragraph shall control all agreements between the Borrower and the Lender.

9. Assignment. This Note shall not be assignable by either party without the expres
written consent of the other party.

10. Amendment. This Note may be modified or amended only by written instrument signed by
both parties to this Note.

11. Conflicting Agreements. In the event of any inconsistencies between the terms of this
Note (which may be amended from time to time) and the terms of any other document related to the
loan evidenced by the Note, the terms of this Note shall prevail.

12. Governing Law; Consent to Jurisdiction. This Note shall be governed by the laws of the
State of California and shall be construed in accordance with such laws, irrespective of its choice
of law principles. The Borrower specifically consents to the jurisdiction of the court located in
Santa Clara County, California, or if that Court is unable to exercise jurisdiction for any reason,
to the jurisdiction of the United States Northern District Court located in Santa Clara County,
California, to resolve any dispute or claim under this Note.

[SIGNATURE PAGE FOLLOWS]

BCInet – Secured Promissory Note (Other Assets)

2

 

IN WITNESS WHEREOF, the Borrower caused this Note to be executed as of the date first above
written.

	 	 	 	 	 
	BCInet, Inc. 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Thomas P. Reynolds
	 	 	President & CEO
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED:
	 
	 	 	 	 
	 	 	OCZ Technology Group, Inc.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Ryan M. Petersen
	 

	 	 	 	President & CEO

BCInet – Secured Promissory Note (Other Assets)

 

 

Exhibit A

SECURITY AGREEMENT

BCInet – Secured Promissory Note (Other Assets)exv10w20

Exhibit 10.20

BCInet, Inc.

SECURED CONVERTIBLE PROMISSORY NOTE

	 	 	 	 	 
	$414,200

	 	 	 	August 31, 2009
	 

	 	 	 	San Jose, California

     FOR VALUE RECEIVED, and in connection with the Asset Purchase Agreement of even date herewith
(the “Purchase Agreement”) between BCINET, INC., a Delaware corporation (“Maker”), and OCZ
TECHNOLOGY GROUP, INC., a Delaware corporation (“Holder”), the undersigned Maker hereby promises to
pay to the order of Holder, or the lawful assignee of Holder, at such place as Holder of this Note
may from time to time designate in writing, the principal sum of up to $414,200, together with
simple interest on the unpaid principal balance at the rate of three percent (3%) per annum.

     Principal and interest shall be paid in lawful money of the United States. This Note may be
prepaid in full or in part at any time without penalty. Payments shall be credited first on
interest then due and the remainder, if any, shall be credited on the unpaid principal, and
interest shall cease on the principal so credited. This Note is the Note issued under the Purchase
Agreement and is entitled to the benefits of the security interest described in Section 2 below.

     1. Maturity Date. The entire unpaid balance of principal and interest due under this
Note shall be due and payable on the earlier to occur of the following (the “Maturity Date”):

     (a) The fifth (5th) anniversary of the date hereof;

     (b) Any acquisition of Maker by means of merger or other form of corporate reorganization in
which the stockholders of Maker immediately prior to such event do not own a majority of the
outstanding shares of the surviving corporation and in which outstanding shares of Maker are
exchanged for securities or other consideration issued, or caused to be issued, by the acquiring
corporation or its subsidiary (other than a mere reincorporation transaction) or any transaction or
series of related transactions to which Maker is a party in which in excess of fifty percent (50%)
of Maker’s voting power is transferred or (ii) a sale, lease or disposition of all or substantially
all of the assets of Maker shall be treated as a liquidation, dissolution or winding up of Maker;
or

     (c) The occurrence of any of the following events (each of such events is referred to herein
as “Event of Default”):

     (i) Any time Maker shall admit in writing its inability to pay debts as they
become due, or shall make any assignment for the benefit of any creditors, or shall
file a petition seeking any reorganization, arrangement, liquidation, dissolution or
composition, readjustment or similar release under any present or future statute,
law or regulation, or on the filing or commencement of any petition, action, case or
proceeding, voluntary or involuntary, under any state or federal law regarding
bankruptcy or insolvency.

BCInet
– Secured Promissory Note

1

 

     (ii) Maker is in material breach of the terms of the Security Agreement
(defined below) or this Note.

     2. Security Interest. Maker’s obligations under this Note are secured by a security
interest in Maker’s assets, as set forth in the Security Agreement, of even date herewith, by and
between Maker and Holder, in substantially the forms attached to the Purchase Agreement as
Exhibit F (the “Security Agreement”).

     3. Conversion.

     (a) Conversion Right. The Holder shall have the right, exercisable in whole or in
part at any time and from time to time to convert the outstanding principal and accrued interest
hereunder into a number of fully paid and nonassessable whole shares of the Company’s Series A
Preferred Stock or such other applicable class of Preferred Stock, determined in accordance with
Section 3(b) below.

     (b) Shares Issuable. The number of whole shares of Preferred Stock into which this
Note may be voluntarily converted (“Conversion Shares”) shall be determined by dividing the
aggregate principal amount borrowed hereunder together with all accrued interest to the date of
conversion by the Conversion Price (hereinafter defined). The “Conversion Price” shall mean the
lesser of (i) the per-share purchase price of the Company’s Series A Preferred Stock and (ii) the
per-share purchase price of any class of the Company’s Preferred Stock.

     (c) Conversion Procedures. Holder shall provide the Company with a written notice of
conversion setting forth the amount to be converted. The notice must be delivered to the Company
together with this Note. Within five (5) business days of receipt of such notice, the Company
shall deliver to the Holder the certificates for the Preferred Stock issuable upon such conversion
and, if the entire principal amount hereunder was not so converted, a new note representing such
balance. The shares of the Preferred Stock issuable upon such conversion shall be deemed issued
and outstanding upon receipt of the notice of conversion.

     (d) Delivery of Stock Certificates. Upon the conversion of this Note and return of
the original Note to the Maker, the Maker at its expense will issue and deliver to the Holder of
this Note a certificate or certificates (bearing such legends as are required by applicable state
and federal securities laws in the opinion of counsel to the Maker) for the number of full shares
of Preferred Stock issuable upon such conversion.

     (e) No Fractional Shares. No fractional shares of Preferred Stock shall be issued
upon conversion of this Note. In lieu of the Maker issuing any fractional shares to the Holder
upon the conversion of this Note, the Maker shall pay to the Holder the amount of outstanding
principal and interest hereunder that is not so converted.

     4. Further Assurances. Maker agrees that it will execute and deliver all further
instruments and documents, and take all further action, that may be necessary or desirable to
further the purposes of this Note.

BCInet
– Secured Promissory Note

2

 

     5. Miscellaneous.

     (a) Consent. Maker hereby waives any other presentment, protest, demand for payment,
notice of dishonor, and any and all other notices or demands in connection with the delivery,
acceptance, performance, default or enforcement of this Note and hereby consents to any extensions
of time, renewals, waivers or modifications that may be granted or consented to with respect to the
terms of this Note by Holder.

     (b) Attorneys’ Fees. Maker agrees to pay the costs and expenses, including reasonable
attorneys’ fees, which may be incurred by Holder in connection with the collection of this Note,
whether or not legal action is instituted or filed.

     (c) No Waiver. Maker agrees that Holder’s acceptance of partial or delinquent
payments or the failure of Holder to exercise any right shall not waive any obligation of Maker or
right of Holder, or waive any similar default.

     (d) Assignability. This Note shall not be assignable by either party without the
express written consent of the other party.

     (e) Amendment. This Note may be modified or amended only by written instrument signed
by both parties to this Note.

     (f) Conflicting Agreements. In the event of any inconsistencies between the terms of
this Note (which may be amended from time to time) and the terms of any other document related to
the loan evidenced by the Note, the terms of this Note shall prevail.

     (g) Choice of Law. This Note shall be governed by and construed in accordance with
the laws of the State of California.

     (h) Notices. All notices and other communications required or permitted hereunder
shall be effective upon receipt and shall be in writing and may be delivered in person, by
telecopy, electronic mail, overnight delivery service or U.S. mail, in which event it may be mailed
by first-class, certified or registered, postage prepaid, addressed (a) if to Holder, at the
Holder’s address as the Holder shall have furnished to the Maker in writing, or, until any such
holder so furnishes an address to the Maker, then to and at the address of the last holder of such
shares who has so furnished an address to the Maker or (b) if to the Maker, at its address Maker
shall have furnished to Holder in writing.

     (i) Severability. If any provision or provisions of this Note shall be deemed to be
contrary to public policy or shall for any reason be held to be invalid, then such provision or
provisions shall be deemed to be separable from the remaining provisions of this Note, and shall in
no way affect the validity of any of the remaining provisions of this Note.

[Remainder of Page Intentionally Left Blank]

BCInet
– Secured Promissory Note

3

 

     IN WITNESS WHEREOF, BCInet, Inc. has caused this Note to be executed in its corporate name and
this Note to be dated, issued and delivered, all on the date first above written.

	 	 	 	 	 
	BCInet, Inc. 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	By:
	 	 
	 	 	 	 	 
	 	 	 	 	Thomas P. Reynolds
	 	 	 	 	President & CEO
	 
	 	 	 	 
	Acknowledged and Accepted:
	 
	 	 	 	 
	 	 	OCZ Technology Group, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Ryan M. Petersen
	 

	 	 	 	President & CEO

BCInet
– Secured Promissory Note

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]