Document:

Unassociated Document

Exhibit 4.5

THIS CONVERTIBLE NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE SECURITIES LAWS, OR IF THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS ON REDEMPTION AND CONVERSION SET FORTH IN THIS AGREEMENT BETWEEN SEARCHHELP, INC. AND THE ORIGINAL HOLDER HEREOF.

SEARCHHELP, INC.

10% CONVERTIBLE NOTE DUE XXXXXXXX

	
Note # XXXXXX

	
State of New York

	  	  
	
$XXXXXX

	
XXXXXX

THIS NOTE is one of a series of duly authorized issued Notes of SEARCHHELP, INC., a Delaware corporation having an office located at 1055 Stewart Avenue, Bethpage, New York 11714 (the “Company”), designated as its 10% Convertible Notes, due XXXXXX (the “Notes”), in an aggregate principal amount of  $XXXXX.

FOR VALUE RECEIVED, the Company promises to pay to the order of Arthur Bello, or registered assigns (the “Holder”), the amount of XXXXXX ($XXXXX), on or before XXXXXX (the “Maturity Date”), ”) and to pay interest to the Holder on the principal sum at the rate of 10% per annum, payable monthly (each an “Interest Payment Date”), commencing XXXXXXX.  Interest shall be calculated on the basis of a 360-day year and for the actual number of days elapsed.  Interest shall be payable, in the Company’s sole discretion, in cash or additional shares of Common Stock.  In the event that the Company elects to pay interest with shares of its Common Stock, the Company shall issue the holder of the Note such number of shares of Common Stock as calculated by dividing the dollar amount of the interest payment by the Market Price of the shares of Common Stock.  For purposes hereof, “Market Price” shall mean the average volume weighted average price per share of the Common Stock of the Company, as traded on the applicable market therefore, for the ten (10) trading days immediately preceding the day that shall precede the due date of the interest payment by three business days. All overdue, accrued and unpaid interest and other amounts due hereunder shall bear interest at the rate of 12% per annum and accrue daily from the date such interest is due hereunder through and including the date of payment. Notwithstanding anything to the contrary contained herein, the Company may not issue shares of common stock of the Company (the “Common Stock”) in payment of interest and/or principal amount if. (i) the number of shares of Common Stock at the time authorized, unissued and unreserved for all purposes, or held as treasury stock, is insufficient to pay interest hereunder in shares of Common Stock; (ii) the issuance of such shares would result in the recipient thereof beneficially owning more than 4.999% of the issued and outstanding shares of Common Stock as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended. 

Should any amount payable under this Note become due and payable on other than a business day, the Maturity Date or any Interest Payment Date shall be extended to the next succeeding business day.  For the purposes of the preceding sentence, a business day shall be any day that is not a Saturday, Sunday or legal holiday in the State of New York.

1.           Exchange and Transfer.

(a)           The Holder may, at its option, in person or by duly authorized attorney, surrender this Note for exchange, at the principal business office of the Company, and receive in exchange therefor, a new note in the same amount as the unpaid amount of this Note, each such new Note to be dated as of the date of this Note and to be in such amount as remains unpaid and payable to such person or persons, or order, as the Holder may designate in writing.

 

  

  

 

 

(b)           Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Note and (in the case of loss, theft or destruction) of an indemnity reasonably satisfactory to it, and upon surrender and cancellation of this Note, if mutilated, the Company will deliver a new Note of like tenor in lieu of this Note.  Any Note delivered in accordance with the provisions of this Section shall be dated as of the date of this Note.

(c)           No service charge will be made for such registration of transfer or exchange.

2.           Prepayment.

This Note may be prepaid by the Company in whole or in part at anytime, by providing at least thirty (30) days prior written notice to the Holder.  The Holders shall have the right to tender, and the Company shall honor any notices of conversion (as set forth in Section 4), without restriction, delivered prior to the expiration of ten (10) days after receipt by the Holders of the prepayment notice.  Any such prepayment by the Company shall be in cash, shall include any accrued and unpaid interest thereon, and shall be free of any claim of subordination.

 

3.           Redemption.

 

(a)           On September 2, 2006, up until the Maturity Date, the holder may redeem all or any portion of this Note upon at least sixty (60) days prior written notice to the Company.

 

(b)           The Holder may also redeem all or any portion of this Note, upon the next private placement or public offering of Common Stock occurring prior to the Maturity Date which raises at least $2,000,000, upon at least thirty (30) days prior written notice to the Company.

4.           Conversion.

(a)           All outstanding principal and accrued interest on this Note is convertible, at the option of the Holder, at any time after XXXXXX, into fully paid and non-assessable shares of Common Stock at the conversion rate (the “Conversion Rate”) of $.40 per share (the "Conversion Shares").

 

 

(b)           Any such conversion shall be in the minimum amount of $10,000 and integral multiples of $10,000; provided, however, the final conversion may be for all of the remaining principal and accrued interest.  Any partial conversion of this Note shall be deemed a conversion of the principal sum hereof until the entire principal amount is converted.  Thereafter, any conversion shall be of accrued interest.  If the Company is the issuer of securities to be sold by it under an effective registration statement pursuant to the Securities Act of 1933, as amended, the Company will provide no less than ten (10) days prior notice to the Holder and all conversion rights hereunder will terminate upon the closing of the sale by the Company of the securities covered by said registration statement unless the Holder shall have converted this Note before said date.  In the event the Common Stock is split, subdivided or combined, the conversion rate thereafter in effect shall be appropriately adjusted by the Company to provide the Holder with the number of Conversion Shares upon conversion such Holder would have received on such split, subdivision or combination if it had converted this Note immediately prior thereto.  In the event the Common Stock is reclassified or the Company merges or combines with another entity in a transaction in which the holders of Common Stock receive securities or other consideration in respect of such Common Stock, the Holder shall be entitled after such event to convert this Note into the kind and type of securities it would have received had the Holder converted this Note immediately prior to such event.

(c)           Piggyback Registration.  The Company shall be obligated to register the Conversion Shares in accordance with the Securities Act if the Company proposes, at any time after 150 days of the issuance date of this Note, to register any equity securities under the Securities Act, with the exception of any such registration in connection with an employee benefit plan, a business combination, an exchange offer, a dividend reinvestment plan, a merger or acquisition or pursuant to a registration statement on Form S-4 or Form S-8 or other comparable form, subject to the consent of the underwriter if the potential registration relates to an offering being underwritten by such underwriter.  On each such occasion the Company will give written notice, no less than fifteen (15) business days prior to the anticipated filing date, of its intention to do so.  However, the Company may, at any time prior to the effectiveness of any such registration statement, in its sole discretion and without the consent of the Holder, abandon the proposed registration.  Written notice shall be deemed to have been duly given as follows: (i) if delivered in person or by messenger or an overnight courier service against receipt, notice shall be deemed to be given on the date of receipt; (ii) if sent by certified or registered mail, postage paid, return receipt requested, five business days after such notice is sent, or; (iii) if sent by telegram, facsimile, telex or similar means, provided that a copy thereof is sent on the same day by postage paid first-class mail, the business day next following the date such notice is sent.

 

  

  

 

 

5.           Event of Default.

In case the Company fails to pay back any outstanding amount of this Note for any reason whatsoever, the Holder may, by written notice to the Company, declare the full principal amount of this Note (and, at such Holder's option, all other Notes then held by such Holder), together with interest and other amounts owing in respect thereof, to the date of acceleration, to be, whereupon the same shall become, immediately due and payable in cash.  Such declaration may be rescinded and annulled by Holder at any time prior to payment hereunder.  No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. An Event of Default shall occur upon:

(a)           Any default in the payment of the principal of, interest on or liquidated damages in respect of, this Note, free of any claim of subordination, as and when the same shall become due and payable (whether on the applicable interest payment date, the Conversion Date, the Maturity Date, by acceleration or otherwise).

(b)           The Company commencing a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commencing any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company; or there is commenced against the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Company makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company for the purpose of effecting any of the foregoing.

(c)           The Company’s default in any of its obligations or if an event shall occur, or shall fail to occur, which gives (or would give after the passage of time or giving of notice or both) the payee of any such obligation the right to accelerate the payment thereof under any mortgage, credit agreement or other facility, indenture agreement, promissory note or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness of the Company in an amount exceeding two hundred and fifty thousand dollars ($250,000), whether such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable.

6.           Representations and Warranties of the Holder.

(a)           The Holder is acquiring this Note for the Holder’s own account, as principal, for investment purposes only, and not with any intention to resell, distribute or otherwise dispose of or fractionalize this Note, in whole or in part.

(b)           The Holder has not received any offering literature or prospectus, other than such information that is available publicly, and no representations or warranties have been made to the Holder by the Company or their employees or agents, other than the representations set forth herein.

(c)           The Holder has had an unrestricted opportunity to: (i) obtain additional information concerning the offering of this Note, the terms, conditions and restriction imposed upon this Note, the Company and any other matters relating directly or indirectly to the Holder's purchase of this Note; and (ii) ask questions of, and receive answers from the Company and to obtain such additional information as may have been necessary to investigate the Company and make an investment therein.

 

  

  

 

 

(d)           The Holder has sufficient knowledge and experience in evaluating and investing in securities of companies similar in nature and stage of development as the Company and acknowledges that it is able to fend for itself, bear the economic risk of its investment in the Company for an indefinite period of time, has no need for liquidity in such investment, and it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Company.  The Holder has had an opportunity to discuss the Company's business, management and financial affairs with the Company's management.  The Holder understands that an investment in and/or loan to the Company is speculative and that the Holder may ultimately lose the entire amount of its investment in and/or loan to the Company.

(e)           The Holder is not relying on the Company and/or the Company’s legal and financial advisers with respect to any legal, investment or tax considerations involved in the purchase, ownership and disposition of this Note.  The Holder has relied solely upon the advice of, or has consulted with, in regard to the legal, investment and tax considerations involved in the purchase, ownership and disposition of this Note, the Holder's own legal counsel, business and/or investment adviser, accountant and tax adviser.

(f)           The Holder understands that this Note cannot be sold or transferred, except in compliance with Rule 144 of the United States Securities and Exchange Commission.  In addition, the Holder understands that this Note has not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or under any applicable state securities or blue sky laws or the laws of any other jurisdiction, and cannot be resold unless registered or unless an exemption from registration is available.  The Holder understands that there is no plan to register this Note under any law.

(g)           The Holder is aware that there is currently no market for this Note. The Holder recognizes that an investment in the Company involves substantial risks, including loss of the entire amount of such investment, and the Holder has taken full cognizance of and understands all of the risks related to the purchase of this Note and is willing and able to and can afford to bear the economic risks of an investment in the Company for an indefinite period of time.

(h)           The Holder has adequate means of providing for the Holder's current financial needs and contingencies, is able to bear the substantial economic risks of an investment in the Company for an indefinite period of time, has no need for liquidity in such investment, and, at the present time, could afford a complete loss of such investment.

(i)           The Holder is an “accredited investor” as that term is defined in Rule 506 of Regulation D under the 1933 Act inasmuch as the Holder meets the requirements under Rule 506.  All information that Holder has provided concerning the Holder, the Holder's financial position and knowledge of financial and business matters is true, correct and complete.

(j)           The Holder maintains its domicile at the residence address shown on first page and the Holder is a United States resident.

(k)           Holder has not dealt with a broker in connection with the purchase of this Note and agrees to indemnify and hold the Company and its officers harmless from any claims for brokerage or fees in connection with the transactions contemplated herein.

7.           Covenants of the Company. 

(a)           The Company covenants that it will at all times reserve and keep available such number of authorized and unissued shares of the Common Stock solely for the purpose of issuance upon conversion of the Notes and payment of interest on the Notes, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holders.

(b)           The obligations of the Company under this Note shall not be subject to reduction, limitation, impairment, termination, defense, set-off, counterclaim or recoupment for any reason.  Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Note at the time, place, and rate, and in the coin or currency, herein prescribed.  This Note is a direct obligation of the Company.  This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.  The Company may only voluntarily prepay the outstanding principal amount on the Notes in accordance with Section 2 hereof.

 

  

  

 

 

8.           Miscellaneous.

(a)           Limited Rights of Holders.  This Note shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Company, unless and to the extent converted into Conversion Shares in accordance with the terms hereof.

(b)           Amendments and Waivers.  No provision of this Note may be amended without the express written consent of both the Company and the Holder. No delay by the Company in exercising any power or right hereunder shall operate as a waiver of any power or right, nor shall any single or partial exercise of any power or right preclude other or further exercise thereof, or the exercise thereof, or the exercise of any other power or right hereunder or otherwise; and no waiver whatsoever or modification of the terms hereof shall be valid unless set forth in writing by the Holder and then only to the extent set forth therein.

(c)           Governing Law; Jurisdiction.  This Note is made and delivered in, and shall be governed by and construed in accordance with the laws of, the State of New York (without giving effect to principles of conflicts of laws of the State of New York or any other state), and any dispute shall be resolved in the state or federal courts located in Nassau County, New York.

(d)           Counterparts.  This Agreement may be executed in one or more counterparts, including facsimile signatures, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE FOLLOWS]

 

  

  

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

	  	
SEARCHHELP, INC.

	 
	  	  	  	  	 
	  	
By:

	  	  	 
	  	  	
Name:

	
William Bozsnyak

	 
	  	  	
Title:

	
Chief Executive Officer

	 

	
Acknowledged & Agreed:

	  
	  
	  
	  
	  
	
Name:Unassociated Document

Exhibit 4.6

 

SENIOR PROMISSORY NOTE

 

NEITHER THIS SENIOR PROMISSORY NOTE NOR ANY OF THE SECURITIES ISSUABLE HEREUNDER HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES, OR DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH THE ACT OR UNLESS SOLD IN FULL COMPLIANCE WITH RULE 144 UNDER THE ACT.

 

THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS SENIOR PROMISSORY NOTE HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF NEW YORK OR THE STATE OF DELAWARE OR ANY OTHER STATE AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SUCH SECURITIES IS EXEMPT FROM QUALIFICATION BY THE APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF NEW YORK OR ANY OTHER STATE.  THE RIGHTS OF THE HOLDER OF THIS PROMISSORY NOTE ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

 

	
$XXXXX

	
Syosset, New York

	  	
XXXXXX

 

ECHOMETRIX, INC.

 

SENIOR PROMISSORY NOTE

 

Echometrix, Inc., a Delaware corporation (the “Company”), in exchange for a bridge note dated XXXXXXX hereby promises to pay to XXXXXXX (the “Holder”), the principal amount of $50,000 (the “Principal”), together with interest on the unpaid amount thereof in accordance with the terms hereof, from the date hereof until paid in accordance with the terms hereof.

  

 

 

 

	
1.

	
Terms of the Senior Promissory Note.

 

	
  

	
1.1.

	
Interest Rate.  The rate of interest hereunder (“Interest Rate”) shall be ten percent (10%) per annum computed on the basis of a 360 day year for the actual number of days elapsed. Interest is payable in unrestricted shares of the Company’s common stock each quarter calculated at the trailing quarterly volume weighted average price.

 

	
  

	
1.2.

	
Payment at Maturity Date. The Principal shall be due nine months from the effective date above.

 

	
  

	
1.3.

	
Restricted Common Stock. The Holders shall receive one (1) restricted share of the Company’s common stock for each one dollar ($1.00) of Principal exchanged within ten (10) days of the Company’s receipt of this executed exchange note.

 

	
  

	
1.4.

	
Interest in Arrears. The Holders shall receive all accrued and unpaid interest calculated through XXXXXXX in shares of unrestricted common stock at a calculated price of $0.12 per share. Total interest of $XXXXX shall be exchanged for XXXXX unrestricted common shares of the Company.

 

	
  

	
1.5.

	
Conversion Feature. This senior note is convertible into free trading common shares at $0.14 per share.

 

	
  

	
1.6.

	
Senior Debt Ranking. This senior debt class (Senior Promissory Note, This Note, Senior Debt, Senior Note) takes priority over all other unsecured or non-senior debt, as well as any senior debt issued in the future owed by Echometrix and or its affiliates. This Senior Debt also takes priority over any cash dividends or distributions to the Preferred B Shareholders. These senior notes take re-payment priority over all existing debt, as well as any debt issued in the future.

	
  

	
1.7.

	
Mandatory Principal Repayment. This Note has a mandatory principal pay down in cash to each noteholder on a pro-rata basis.  Mandatory cash principal payments of 50% of the net funds received will commence when the Company receives cash proceeds from currently outstanding non-cashless Option or Warrant exercises. Additionally, mandatory principal repayments of 50% of the net positive cash flow will commence when the Company’s cash flow for any one fiscal quarter shows positive cash flow in excess of $1 million based on quarterly filings.

	
  

	
1.8.

	
Warrant.  For every dollar of face/principal exchanged you shall receive a 1-year warrant to purchase common shares in Echometrix at $0.35 a share.

 

	
2.

	
Events of Default.  The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute an "Event of Default" hereunder:

 

(a)           The Company shall fail to make any payment of principal of, or interest on, this Note when due and payable or declared due and payable;

 

  

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(b)           The Company shall fail or neglect to perform, keep or observe any provision of this Note;

(c)           The Company files a bankruptcy petition, a bankruptcy petition is filed against the Company, or the Company makes a general assignment for the benefit of creditors.

Upon the occurrence of any Event of Default, Holder may (i) declare all indebtedness evidenced by this Senior Promissory Note to be immediately due and repaid before any other debt class holder(s) receive any repayment, whereupon all such indebtedness shall become due and payable, without presentment, demand, protest or further notice of any kind, all of which are expressly waived by the Company, and (ii) exercise all rights and remedies available under this Senior Note and applicable law.

	
3.

	
Miscellaneous.

	 	
3.1

	
Transfer of Note.  This Senior Note shall not be transferable or assignable in any manner, except to affiliates of the Holders.

	 	
3.2

	
Titles and Subtitles.  The titles and subtitles used in this Senior Note are for convenience only and are not to be considered in construing or interpreting this Note.

	 	
3.3

	
Notices.  Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon Holder or Company in connection with this Agreement, or whenever Holder or Company desires to give or serve upon the other any communication with respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing, and shall be deemed to be properly given (a) when personally delivered, (b) three Business Days after deposit in the mail, if mailed by United States first class, certified or registered mail, postage prepaid, (c) one day after deposit with a public telegraph company for transmittal, charges prepaid, or (d) if given by facsimile, when the appropriate confirmation is received:

If to Holder, at

 

_________________

_________________

_________________

Fax No. __________

If to Company, at

 

Echometrix, Inc.

6800 Jericho Turnpike, Suite 208E

Syosset, New York 11791

Attn: CEO

Fax No. 516-802-0228

 

  

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or at such other address as may be substituted by notice given as herein provided.  The giving of any notice required hereunder may be waived in writing by the Person entitled to receive such notice.

 

	 	
3.4

	
Amendments and Waivers.  This Senior Note is issued by the Company pursuant to the Agreement. This Note may be amended and the observance of any other term of this Note may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Holder.  Any amendment or waiver effected in accordance with this Section 4.5 shall be binding upon the Holder of this Note, each future holder of all such securities and the Company.

 

	 	
3.5

	
Beneficiaries.  This Senior Note and all the provisions, conditions, promises and covenants hereof shall inure to the benefit of Holder, its successors and assigns, and shall be binding in accordance with the terms hereof upon the Company, its successors and assigns, provided nothing herein shall be deemed consent to any assignment restricted or prohibited by the terms of this Note.

 

	 	
3.6

	
Governing Law; Severability.  This Senior Note shall be governed by and construed and enforced in accordance with the laws of the State of New York. If any provision of this Note is prohibited by, or is unlawful or unenforceable under, any applicable law of any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such prohibition without invalidating the remaining provisions hereof; provided that where the provisions of any such applicable law may be waived, they hereby are waived by the Company to the full extent permitted by law in order that this Note shall be deemed to be a valid and binding promissory note in accordance with its terms.

 

	 	
3.7

	
Independent Counsel. Holder acknowledges and agrees that Holder has been provided the opportunity and encouraged to consult with counsel of Holder’s own choosing with respect to this Note.

 

 

  

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3.8

	
Usury.  Notwithstanding any provision to the contrary contained in this Senior Note, or any and all other instruments or documents executed in connection herewith, Holder and the Company intend that the obligations evidenced by this Note conform strictly to the applicable usury laws from time to time in force.  All agreements between the Company and Holder, whether now existing or hereafter arising and whether oral or written, hereby are expressly limited so that in no case, contingency or event whatsoever, whether by acceleration of maturity hereof or otherwise, shall the amount paid or agreed to be paid to Holder, or collected by Holder, by or on behalf of the Company for the use, forbearance or detention of the money to be loaned to the Company hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein of the Company to Holder, or in any other document evidencing, securing or pertaining to such indebtedness evidenced hereby, exceed the maximum amount permissible under applicable usury law.  If, under any circumstances whatsoever, fulfillment of any provisions thereof or any other document, at the time performance of such provisions shall be due, shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity; and if under any circumstances Holder ever shall receive from or on behalf of the Company an amount deemed interest, by applicable law, which would exceed the highest lawful rate, such amount that would be excessive interest under applicable usury laws shall be applied to the reduction of the Company's unpaid Principal owing hereunder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal and such other indebtedness, the excess shall be deemed to have been a payment as a result of an error on the part of Holder and the Company and the party receiving such excess payment shall promptly, upon discovery of such error or upon notice thereof from the party making such payment, refund to the Company or to any other person making such payment on the Company's behalf, and this Note shall be automatically deemed reformed so as to permit only the collection of the maximum non-usurious rate and amount of interest allowed by applicable law.  All sums paid or agreed to be paid to Holder or any other holders hereof for the use, forbearance or detention of the indebtedness evidenced hereby shall, to the full extent permitted by applicable law, be amortized, prorated, allocated and spread through the full term of this Note.

 

	 	
3.9

	
Waiver of Jury Trial.  THE COMPANY AND HOLDER EACH WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS NOTE OR ANY DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THIS NOTE AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THE COMPANY AGREES THAT THE COMPANY WILL NOT ASSERT ANY CLAIM AGAINST HOLDER ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

 

	
ECHOMETRIX, INC

	  	  
	
By:

	  
	  	
Erica Zalbert, Chief Financial Officer

	
Accepted by:

	  
	  

 

 

  

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