Document:

EMPLOYEE LEASING AND LICENSING AGREEMENT

 

Execution

EXHIBIT 10.39

EMPLOYEE LEASING AND LICENSING AGREEMENT

          THIS EMPLOYEE LEASING AND LICENSING AGREEMENT (the “Agreement”) is made by
and between EN POINTE TECHNOLOGIES, INC. (“ENPT”) and EN POINTE GLOBAL
SERVICES, INC. (the “Company”), effective as of the 17th day of October, 2003.

          WHEREAS, the Company desires to use the services of designated ENPT
employees and license certain ENPT Marks (as defined below) and ENPT is willing
to lease certain employees and license certain Marks to the Company; and

          WHEREAS, the parties desire to enter into this Agreement in order to set
forth their respective rights and obligations relating to the employee leasing
arrangement and the licensing of the Marks.

          NOW, THEREFORE in consideration of the promises and covenants and
agreements herein contained and other good an valuable consideration, the
receipt and sufficiency of which are herby acknowledged, the parties, intending
to be legally bound, hereby agree as follows:

1. EMPLOYEE LEASING ARRANGEMENT

     1.1. Provision of Leased Employees. ENPT shall lease to the Company the
employees designated in Appendix A (hereinafter “Leased Employees” or “Leased
Employee” when referred to individually) pursuant to the terms and conditions
hereof. The Leased Employees shall provide services to the Company but will,
at all times during the period that said services are being provided, remain
the employees of ENPT. ENPT will have the sole responsibility of hiring and
discharging the Leased Employees, and will determine all aspects of each Leased
Employee’s remuneration, including base pay, bonus levels, entitlement to
benefits and annual salary treatment and progression.

     1.2. Payment of Compensation and Provision of Benefits. ENPT will remain
solely responsible for all matters related to (i) the payment of all
compensation and the provision of all employee benefits to the Leased Employees
(including, without limitation, disability insurance, workers compensation
and/or any other legally mandated benefit or insurance coverage), and (ii) the
reporting, withholding and remittance of federal, state and local taxes with
respect to wages or other compensation earned by the Leased Employees. The
Leased Employees will not be entitled to receive any compensation from the
Company and will not be entitled to participate in any employee benefit plan or
arrangement maintained by the Company.

     1.3. Identification of Leased Employees. From time to time, the Company
may request the services of Leased Employees by providing to ENPT a list of
positions that it is seeking to fill and the job description of each such
position (including any minimum qualifications necessary for each position).
Upon receipt of any such request, ENPT will work expeditiously to identify
which of its employees, if any, that are then available to fill the
specified position and will describe to the Company the qualifications of
each such employee.

1

 

The Company may then select from the individuals
identified by ENPT, if any, those individuals it desires to lease pursuant to
this Agreement. The names of such individuals will then be added to Appendix A
who will then be deemed Leased Employees. The employees of ENPT set forth on
Appendix A as of the date hereof shall be deemed Leased Employees as of the
commencement of this Agreement.

     1.4. Performance of Leased Employees. The Company will provide
instructions and training to the Leased Employees as to the general nature of
the work to be performed. The Company’s management will provide to ENPT, in
any reasonable manner requested by ENPT, a report on each Leased Employee’s
performance. The Company may, in its sole discretion, refuse to accept the
services of any Leased Employee whose performance is unsatisfactory as
determined by the Company. If the Company determines that a Leased Employee’s
performance is unsatisfactory, the Company shall notify ENPT in writing and the
Company shall thereafter have no obligation to pay for the services of such
Leased Employee. The Company may also request, in writing, that the Leased
Employee be replaced. The notice and/or request for replacement described in
this Section 1.4 shall become effective at the time described in Section 3.2 of
this Agreement. ENPT shall identify an individual to replace an unsatisfactory
Leased within two business days of the effective date of the Company’s request
for a replacement.

     1.5. Fees. The fees the Company will pay to ENPT for the service of
Leased Employees (the “Fees”) are the following:

          1.5.1. reimbursement for each Leased Employee’s prorated annual base rate
of compensation, overtime pay (if legally required), bonus payments and costs
of employee benefits and insurance coverage, including employer-paid taxes
incident to this compensation (e.g., unemployment insurance, FICA, etc.)
(collectively “Leased Employee Cost”); and

          1.5.2. five percent (5%) of the Leased Employee Cost.

     1.6. Maintenance of Records. ENPT will keep appropriate records as may be
necessary to enable the costs identified in Section 1.5 to be ascertained by
the Company and will at all reasonable times produce such records and other
relevant accounts, materials and information as the Company may require. The
Company will maintain time and attendance records for each Leased Employee.

     1.7. Payment. ENPT shall submit to the Company invoices for Fees no more
frequently than monthly. The Company shall pay the Fees thirty (30) days
following receipt of an invoice from ENPT detailing the amounts due.

     1.8. Worksite and Supplies. The Leased Employees will work at the
Company’s premises or at such location as is assigned by the Company. The
Company will supply the employees with all equipment, materials and supplies
required to perform services for the Company. The Company agrees to notify
ENPT immediately upon becoming aware of any condition or situation which could
be detrimental to the health or safety of the Leased Employees.

     1.9. Confidentiality. The Company agrees that it will not request any
Leased Employee to use or provide to the Company any ENPT confidential or
proprietary information,

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equipment, materials or supplies (including but not
limited to customer lists, computer hardware or software, operations practices
or procedures, technical specifications, or any other confidential or
proprietary information of ENPT) without the prior consent of ENPT.

     1.10. Ethics. Both parties to this Agreement acknowledge that the Leased
Employees will be required to abide by any guidelines maintained by ENPT
regarding ethical business practices, as well as any similar guidelines
promulgated by the Company, throughout the period they are providing services
to the Company under this Agreement.

     1.11. Liability Insurance. ENPT will maintain at all times and at its own
cost a general liability insurance policy for actions arising out of the acts
and omissions of Leased Employees occurring during the course of their
employment and will name the Company as an additional insured under that
policy.

     1.12. Expiration or Termination. Either party may terminate the employee
leasing arrangement described in this Section 1 (the “Leasing Arrangement”)
with 30 days advance written notice. Upon termination of the Leasing
Arrangement with respect to any Leased Employee, the Company may hire such
Leased Employee or engage such Leased Employee as a consultant.

     1.13. No Third Party Beneficiaries. Nothing in this Agreement will be
deemed to create a contract or guaranty of employment for any person or to
otherwise modify the employment relationship between ENPT and any Leased
Employee. The parties agree that the intent of this Agreement is to benefit
only the Company and ENPT, and this Agreement will not be construed as an
agreement to benefit any third parties, including but not limited to Leased
Employees.

     1.14. Survival. The obligations set forth in Sections 1.5, 1.6, 1.7, 1.9,
1.11 and 1.12 of this Agreement will survive the termination of the Leasing
Arrangement.

2. LICENSE OF EN POINTE MARKS.

     2.1. Grant of License. Subject to the other provisions of this Section 2,
ENPT grants to the Company a non-exclusive, royalty-free, non-transferable,
non-sublicensable license during the License Term (as defined below) and all
renewal terms thereof to use the Marks (as defined below) for use in connection
with, and as part of, the Company’s (or its subsidiaries’) legal and/or trade
names, marketing and advertising materials, letterhead, business cards,
invoices and website (collectively the “Names and Goods”) anywhere in the
world. The parties acknowledge that the Company is currently using ENPT’s
Marks pursuant to an unwritten License Agreement, and such prior license shall
be subject to the terms and conditions of this Agreement. For purposes of
this Agreement, the “Marks” shall mean “En Pointe” and any derivation thereof.

     2.2. Ownership of the Marks. The Company acknowledges that ENPT owns all
right, title and interest in the Marks and the goodwill associated with the
Marks, and that any use of the Marks by the Company and any goodwill associated
with such use shall inure to the benefit of ENPT. The Company agrees that it
shall never attack or contest or assist others in attacking or
contesting the Marks or ENPT’s rights in the Marks. The Company agrees
not to register or attempt to register the Marks or any similar trade name,
trademark or service mark, or cause the

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Marks or any similar trade name,
trademark or service mark to be registered in any country, state or other
jurisdiction whether within or outside the Territory. ENPT hereby reserves the
exclusive worldwide right to use and register the Marks for use on, and in
connection with, any goods and services. If ENPT requires any specimens of
use, or any photographic reproductions of other identifying materials of use by
the Company, for any filing for a trademark and service mark, the Company shall
promptly provide ENPT with same at the Company’s expense.

     2.3. Maintenance of Marks. Throughout the License Term the Company shall
use commercially reasonable efforts to maintain the quality of the Marks,
including (i) adhering to specific reasonable quality control standards that
ENPT may from time to time promulgate and communicate to the Company with
respect to the Marks; (ii) complying with all federal, state and local laws and
regulations, governing the use of the Marks; and (iv) not altering or modifying
the Marks in any way.

     2.4. License Term. The License Term shall commence on the date hereof and
shall terminate at the option of ENPT upon written notice to the Company, which
option shall only be exercisable during such time as ENPT owns less than five
percent (5%) of the then outstanding Common Stock of the Company. In addition,
the License Term shall terminate at the option of the Company at any time upon
written notice of such termination to ENPT.

     2.5. Expiration of the License Term. Upon the expiration of the License
Term the Company will cease using the Marks and shall use its best efforts to
take all required action to change its corporate name so as to not include the
Marks.

3. MISCELLANEOUS PROVISIONS

     3.1. Amendment and Waiver. This Agreement may not be altered, amended or
modified at any time, unless such alteration, amendment or modification is
approved in writing by the party against whom such modification, amendment or
alteration is sought to be enforced.

     3.2. Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to
the party to be notified, (ii) when sent by confirmed telex or facsimile if
sent during normal business hours of the recipient; if not, then on the next
business day, (iii) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (iv) one (1) 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 party to be notified at the address as set forth on the
signature page hereof or at such other address as such party may designate by
ten (10) days advance written notice to the other parties hereto.

     3.3. Severability. In the event any provision of this Agreement is found
to be invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein will not in any
way be affected or impaired.

     3.4. Entire Agreement. This Agreement constitutes the entire agreement
between the parties relating to the subject matter hereof and no party shall be
liable or bound to the other
party in any manner by any representations, warranties, covenants and
agreements except as

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specifically set forth herein. No oral statements by any
employee of the Company or ENPT will modify or otherwise affect the terms and
provisions of this Agreement.

     3.5. Governing Law. This Agreement will be construed in accordance with
the substantive laws of the State of Delaware, notwithstanding any contrary
choice of law rules or principles.

     3.6. Assignment and Successors. Neither party may, voluntarily, by
operation of law, or otherwise, assign any of its rights or delegate any of its
obligations under this Agreement, without the express prior written consent of
the other party; provided, however, that subject to the foregoing, this
Agreement will bind and benefit the successors and permitted assigns of the
Company and ENPT.

     3.7. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument. This Agreement may be executed by facsimile
signature(s) which shall be binding on the party delivering same, to be
followed by delivery of originally executed signature pages.

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

	 	 	 	 	 
	 	EN POINTE TECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Bob Din
 	 
	 	 	Name:  	Bob Din 	 
	 	 	Title:  

    Address:
100 N. Sepulveda Boulevard, 19th Floor

El Segundo, CA 90245 	 
	 

	 	 	 	 	 
	 	EN POINTE GLOBAL SERVICES, INC.

 	 
	 	By:  	/s/ Mark Briggs
 	 
	 	 	Name:  	Mark Briggs 	 
	 	 	Title:  
Address:  The Crusman Building

55 N. First Street, Suite 300

Clarksville, TN 37040 	 

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APPENDIX

LEASED EMPLOYEES

	1.	 	N. Reese Bagwell
	 
	2.	 	Aaron Bubbs

-6-LOAN AGREEMENT

 

EXHIBIT 10.40

U.S. $700,000

LOAN AGREEMENT

Dated as of February 13, 2004

Between

EN POINTE GLOBAL SERVICES, INC.

as Borrower

and

EN POINTE TECHNOLOGIES, INC.

and

OVEX TECHNOLOGIES LTD.

as Lenders

 

 

LOAN AGREEMENT

          This Loan Agreement (this “Agreement”) dated as of February 13, 2004 is by
and among EN POINTE GLOBAL SERVICES, INC., a Delaware corporation (the
“Borrower”), EN POINTE TECHNOLOGIES, INC. (“ENPT”) and OVEX TECHNOLOGIES
LTD.(“OPK”, and together with ENPT, each individually a “Lender” and
collectively the “Lenders”).

     WHEREAS, Borrower wishes to borrow up to $700,000 in aggregate principal
amount from the Lenders on the terms and conditions set forth herein.

     WHEREAS, ENPT wishes to lend up to $600,000 in aggregate principal amount
to Borrower, and OPK wishes to lend up to $100,000 in aggregate principal
amount to Borrower, all on the terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the premises and covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Lenders and Borrower,
intending to be legally bound, hereby agree as follows:

1. Definitions and Accounting Terms.

     1.1. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

          1.1.1. “Business Day” means a day of the year on which banks are not
required or authorized by law to close in New York City.

          1.1.2. “Loan” means the indebtedness of the Borrower to each of the
Lenders.

          1.1.3. “Loan Documents” means this Agreement and the Notes.

          1.1.4. “Note” means individually and “Notes” means collectively, the
promissory notes of the Borrower payable to the order of each Lender, in
substantially the form of Exhibits A-1 and A-2 hereto, evidencing the
indebtedness of the Borrower to each Lender resulting from the Loan made by
each Lender.

          1.1.5. “Outstanding Principal Amount” means, as of any date of
determination, the aggregate principal amount outstanding under this Agreement
and the Notes.

          1.1.6. “Person” means an individual, corporation, partnership, firm, joint
venture, limited liability company or partnership, association, joint-stock
company, trust, unincorporated organization or governmental entity or body.

 

 

     1.2. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each mean “to
but excluding”.

     1.3. Accounting Terms. Any accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles.

2. Amounts of the Loan.

     2.1. The Loan. The Lenders agree on the terms and conditions hereinafter set
forth, to make the Loan to the Borrower on the date hereof; provided, that (i)
the aggregate principal amount of the Loan from ENPT shall be $600,000, and
(ii) the aggregate principal amount of the Loan from OPK shall be $100,000.
Any amount borrowed under this Section 2.1 and repaid or prepaid may not be
reborrowed under the terms hereof.

     2.2. Repayment. The Borrower shall repay the principal amount then outstanding
for the Loan, together with all accrued and unpaid interest, to the applicable
Lender, or its registered assignee(s), on the earlier of: (i) February 13,
2009 (the “Maturity Date”), or (ii) an initial underwritten public offering of
the Borrower’s Common Stock pursuant to an effective registration statement
under the Securities Act of 1933, as amended.

     2.3. Interest. The Borrower shall pay interest on the unpaid principal amount
of the Loan from the date hereof until such principal amount shall be paid in
full, at the rate of six percent (6%) per annum, payable on the Maturity Date.
Notwithstanding anything to the contrary, if the provisions of the Loan
Documents would require the Borrower to pay interest hereon at a rate exceeding
the highest rate allowed by applicable law, the Borrower shall instead pay
interest under the Loan Documents at the highest rate permitted by applicable
law.

     2.4. Optional Prepayments. Upon at least five (5) Business Day’s notice to the
Lender(s), the Borrower may prepay the outstanding principal amount of the Loan
in whole or in part to one or both of the Lenders. Such prepayment must be
accompanied by the accrued interest to the date of such prepayment on the
principal amount prepaid. The written notice of such prepayment must state the
proposed date and aggregate principal amount of the prepayment.

     2.5. Payments and Computations.

          2.5.1. The Borrower shall make all payments hereunder and under the Notes,
on the day when due in U.S. dollars to the Lenders at their addresses set forth
on the signature page to this Agreement in same day funds. All payments are
subject to reduction for taxes that Borrower is required by law to withhold and
pay to the relevant taxing authorities.

          2.5.2. All computations of interest shall be made by the Lenders on the
basis of a year of 365 or 366 days, as the case may be, for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest is payable.

          2.5.3. Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding

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Business Day, and such extension of time shall in such case be
included in the computation of payment of interest.

3. Conditions to Lending. The obligation of the Lenders to make the Loans shall
be subject to the conditions precedent that the Lenders shall have received the
following, each in form and substance satisfactory to the Lenders: (i) this
Agreement, duly executed by the Borrower; and (ii) the Notes, each duly
executed by the Borrower.

4. Representations and Warranties.

     4.1. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

          4.1.1. The Borrower is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to own, lease and operate its properties and to
carry on its business as now being conducted. The Borrower has heretofore
delivered to the Lenders accurate and complete copies of its Certificate of
Incorporation and Bylaws, as currently in full force and effect.

          4.1.2. The Borrower is not in violation or default of any term of its
Certificate of Incorporation or Bylaws, or of any provision of any mortgage,
indenture, contract, agreement, instrument or contract to which it is party or
by which it is bound, or of any judgment, decree, order, writ or, to its
knowledge, any statute, rule or regulation applicable to the Borrower. The
execution, delivery and performance by the Borrower of the Loan Documents, and
the consummation of the transactions contemplated thereby, are within the
Borrower’s corporate powers, have been duly authorized by all necessary
corporate action, and will not, with or without the passage of time or giving
of notice, result in any violation or contravene (i) the Borrower’s Certificate
of Incorporation or Bylaws, (ii) any law, license, authorization, approval or
permit or (iii) any contractual restriction binding on or affecting the
Borrower.

          4.1.3. No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body or any other
third party is required for the due execution, delivery and performance by the
Borrower of any Loan Document.

          4.1.4. This Agreement has been, and the other Loan Documents when
delivered hereunder will have been, duly executed and delivered by the
Borrower. This Agreement is, and the other Loan Documents when delivered
hereunder will be, the legal, valid and binding obligation of the Borrower
enforceable against the Borrower in accordance with their respective terms.

          4.1.5. There is no pending or threatened action, suit, investigation,
litigation or proceeding affecting the Borrower before any court, governmental
agency or arbitrator that purports to affect the legality, validity or
enforceability of any Loan Document, or the consummation of the transactions
contemplated hereby.

5. Covenants of the Borrower.

     5.1. Covenants. So long as the Loan shall remain unpaid, the Borrower will:

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          5.1.1. Compliance with Laws, Etc. Comply in all material respects, with
all applicable laws, rules, regulations and orders.

          5.1.2. Preservation of Existence, Etc. Preserve and maintain its
existence, rights (charter and statutory) and franchises.

          5.1.3. Use of Loan Proceeds. The Borrower shall use the proceeds from the
Loans for working capital needs and general corporate purposes and shall not
use the proceeds from the Loans to pay off or satisfy any existing debt (other
than trade creditors), including, without limitation, debt to any affiliate of
the Borrower, or to repurchase any of its equity, without the written consent
of the Lenders.

6. Subordination. Lenders hereby agree that the indebtedness of Borrower to
each Lender arising under this Agreement and the Notes, whether principal,
interest or otherwise, shall be subordinated to all other indebtedness of
Borrower, other than trade indebtedness. The Lenders agree to take
commercially reasonable action, including the execution of a subordination
agreement on terms and conditions reasonably acceptable to them, to effect the
foregoing.

7. Miscellaneous.

     7.1. No Waiver; Remedies. No failure on the part of any Lender to exercise,
and no delay in exercising, any right hereunder or under any Note shall operate
as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of
any other right. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

     7.2. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This
Agreement shall be governed in all respects by the laws of the State of
Delaware without regard to the conflicts of laws principals of any
jurisdiction. No suit, action or proceeding with respect to this Agreement may
be brought in any court or before any similar authority other than in a court
of competent jurisdiction in the State of Delaware and the parties hereby
submit to the exclusive jurisdiction of such courts for the purpose of such
suit, proceeding or judgment. Each of the parties hereto hereby irrevocably
waives any right which it may have had to bring such an action in any other
court, domestic or foreign, or before any similar domestic or foreign authority
and agreed not to claim or plead the same. Each of the parties hereto hereby
irrevocably and unconditionally waives trial by jury in any legal action or
proceeding in relation to this Agreement and for any counterclaim therein.

     7.3. Amendment and Waiver. This Agreement may not be altered, amended or
modified at any time, or compliance with any provision waived, unless such
alteration, amendment, modification or waiver is approved in writing by the
party against whom such modification, amendment, alteration or waiver is sought
to be enforced.

     7.4. Survival. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by any party hereto and the
closing of the transactions contemplated hereby.

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     7.5. Successors. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors (including the
Borrower), and permitted assigns, but neither this Agreement nor any of the
rights, interests or obligations hereunder shall be assigned by the Borrower or
the Lenders without the prior written consent of the other party(ies), which
consent shall not be unreasonably withheld. Notwithstanding any of the
foregoing, ENPT may assign, without any such prior written consent, its rights
and interests arising hereunder and arising under the related Note to its
commercial lenders.

     7.6. Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to
the party to be notified, (ii) when sent by confirmed telex or facsimile if
sent during normal business hours of the recipient; if not, then on the next
business day, (iii) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (iv) one (1) 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 party to be notified at the address as set forth on the
signature page hereof or at such other address as such party may designate by
ten (10) days advance written notice to the other parties hereto.

     7.7. Severability. If any provision of this Agreement is held to be
invalid, illegal or unenforceable, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

     7.8. Entire Agreement. This Agreement and the Exhibits hereto, constitute
the full and entire understanding and agreement between the parties with regard
to the subject matter hereof and thereof and no party shall be liable or bound
to any other party in any manner by any representations, warranties, covenants
and agreements except as specifically set forth herein.

     7.9. Counterparts; Execution by Facsimile Signature. This Agreement may
be executed in any number of counterparts, each of which shall be an original,
but all of which together shall constitute one instrument. This Agreement may
be executed by facsimile signature(s) which shall be binding on the party
delivering same, to be followed by delivery of originally executed signature
pages.

[SIGNATURES ON FOLLOWING PAGES]

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          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	EN POINTE GLOBAL SERVICES, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Mark Briggs
	

	 	 	 	
 
	

	 	 	 	Name: Mark Briggs
	

	 	 	 	Title: Chairman/CEO
	

	 	 	 	Address: The Crusman Building

    55 N. First Street, Suite 300 
    Clarksville, TN 37040 USA
	

	 	 	 	Telephone:         
               
        
	

	 	 	 	Facsimile:         
               
           
	 
	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 
	 	 	EN POINTE TECHNOLOGIES, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Kevin D. Ayers
	

	 	 	 	
 
	

	 	 	 	Name: Kevin D. Ayers
	

	 	 	 	Title: CFO
	

	 	 	 	Address: 100 N. Sepulveda Boulevard 
    19th Floor 
    El Segundo, CA 90245 USA
	

	 	 	 	Telephone:         
               
        
	

	 	 	 	Facsimile:         
               
           
	 
	 	 	 	 
	 	 	OVEX TECHNOLOGIES LTD.
	 
	 	 	 	 
	

	 	By
	 	/s/ Omar Saeed
	

	 	 	 	
 
	

	 	 	 	Name: Omar Saeed
	

	 	 	 	Title:
	

	 	 	 	Address: 2nd Floor, Evacuee Trust Complex 
    F-5/1 Sir Aga Khan Road
    Islamabad, Pakistan
	

	 	 	 	Telephone:         
               
        
	

	 	 	 	Facsimile:         
               
           

-6-

 

EXHIBIT A-1

FORM OF PROMISSORY NOTE FOR ENPT

			
	U.S.$600,000
	 	Dated: February 13, 2004

          FOR VALUE RECEIVED, the undersigned, EN POINTE GLOBAL SERVICES, INC., a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
EN POINTE TECHNOLOGIES, INC. (the “Lender”), or the registered holder of this
Promissory Note, on the Maturity Date, as defined in the Loan Agreement (as
defined below), the principal sum of U.S.$600,000, together with interest on
the unpaid principal amount of this Promissory Note from the date hereof until
such principal amount is paid in full at such interest rate as is specified in
the Loan Agreement.

          Both principal and interest are payable as set forth in the Loan Agreement
in lawful money of the United States of America to the Lender at its office at
100 N. Sepulveda Blvd., El Segundo, CA 90245 USA, in same day funds.

          This Promissory Note is one of the Notes referred to in, and is entitled
to the benefits of, the Loan Agreement of even date herewith between the
Borrower, the Lender and Ovex Technologies Ltd. (the “Loan Agreement”; the
terms defined therein being used herein as therein defined). The Loan
Agreement, among other things, (i) provides for the making of a Loan by the
Lender to the Borrower in the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from such Loan being evidenced by this
Promissory Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on
account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified, all such provisions of which are deemed to be a
part of this Promissory Note.

          This Promissory Note contains original issue discount, as defined in
Section 1273 of the Internal Revenue Code of 1986, as amended. Please contact
Mark R. Briggs, Chairman and CEO of the Borrower, at phone number 931-551-8888
for the issue date of the note, the original issue discount in the note and the
yield to maturity.

	 	 	 	 	 
	 	EN POINT GLOBAL SERVICES, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1

 

	 	 	 	 	 

EXHIBIT A-2

FORM OF PROMISSORY NOTE FOR OPK

					
	U.S.$100,000
	 	 
	 	Dated: February 13, 2004

          FOR VALUE RECEIVED, the undersigned, EN POINTE GLOBAL SERVICES, INC., a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
OVEX TECHNOLOGIES LTD. (the “Lender”), or the registered holder of this
Promissory Note, on the Maturity Date, as defined in the Loan Agreement (as
defined below), the principal sum of U.S.$100,000, together with interest on
the unpaid principal amount of this Promissory Note from the date hereof until
such principal amount is paid in full at such interest rate as is specified in
the Loan Agreement.

          Both principal and interest are payable as set forth in the Loan Agreement
in lawful money of the United States of America to the Lender at its office at
2nd Floor, Evacuee Trust Complex, F-5/1 Sir Aga Khan Road, Islamabad, Pakistan,
in same day funds.

          This Promissory Note is one of the Notes referred to in, and is entitled
to the benefits of, the Loan Agreement of even date herewith between the
Borrower, the Lender and En Pointe Technologies, Inc. (the “Loan Agreement”;
the terms defined therein being used herein as therein defined). The Loan
Agreement, among other things, (i) provides for the making of a Loan by the
Lender to the Borrower in the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from such Loan being evidenced by this
Promissory Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on
account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified, all such provisions of which are deemed to be a
part of this Promissory Note.

          This Promissory Note contains original issue discount, as defined in
Section 1273 of the Internal Revenue Code of 1986, as amended. Please contact
Mark R. Briggs, Chairman and CEO of the Borrower, at phone number 931-551-8888
for the issue date of the note, the original issue discount in the note and the
yield to maturity.

	 	 	 	 	 
	 	EN POINT GLOBAL SERVICES, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-2

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