Document:

Unassociated Document

Exhibit 10.5

 

THIS PROMISSORY NOTE (“NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

PROMISSORY NOTE

 

	
Principal Amount: Up to $250,000

	
 Dated as of June 14, 2013

St. Louis, Missouri

                                                                                  

               Quinpario Acquisition Corp., a Delaware corporation and blank check company (the “Maker”), promises to pay to the order of Quinpario Partners LLC or its registered assigns or successors in interest (the “Payee”), or order, the principal sum of up to Two Hundred Fifty Thousand Dollars ($250,000) in lawful money of the United States of America, on the terms and conditions described below.  All payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this Note.

1.            Principal. The principal balance of Note shall be payable on the earlier of: (i) December 31, 2013 or (ii) the date on which Maker consummates an initial public offering of its securities. The principal balance may be prepaid at any time.

2.            Interest. No interest shall accrue on the unpaid principal balance of this Note or as a result of any Drawdown Request, as defined below.

3.           Drawdown Requests. The principal of this Note may be drawn down from time to time prior to the earlier of: (i) December 31, 2013 or (ii) the date on which Maker consummates an initial public offering of its securities, upon written request from Maker to Payee (each, a “Drawdown Request”).  Each Drawdown Request must state the amount to be drawndown, and must not be an amount less than Ten Thousand Dollars ($10,000).  Payee shall fund each Drawdown Request no later than five (5) business days after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns collectively under this Note is Two Hundred Fifty Thousand Dollars ($250,000).  Once an amount is drawn down under this Note, it shall not be available for future Drawdown Requests even if prepaid.  No fees, payments or other amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by Maker.

4.            Terms of Drawdown Requests.  Maker and Payee agree that Maker may request up to Two Hundred Fifty Thousand Dollars ($250,000) for costs reasonably related to Maker’s initial public offering of its securities.      

5.           Application of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.

6.            Events of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)           Failure to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business days of the date specified above.

(b)           Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

  

  

  

 

(c)           Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

7.            Remedies.

 

(a)           Upon the occurrence of an Event of Default specified in Section 6(a) hereof, Payee may, by written notice to Maker, declare this Note to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

(b)           Upon the occurrence of an Event of Default specified in Sections 6(b) and 6(c), the unpaid principal balance of this Note, and all other sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the part of Payee.

8.            Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

9.            Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

10.          Notices. All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such party.  Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

  

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11.          Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK APPLICABLE TO CONTRACTS WHOLLY PERFORMED WITHIN THE BORDERS OF SUCH STATE AND WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF.

12.          Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

13.          Trust Waiver.  Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of or from the trust account to be established in which the proceeds of the initial public offering (the “IPO”) conducted by the Maker (including the deferred underwriters discounts and commissions) and the proceeds of the sale of the units issued in a private placement to occur prior to the effectiveness of the IPO are to be deposited, as described in greater detail in the registration statement and prospectus to be filed with the Securities and Exchange Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the trust account for any reason whatsoever.

 

14.          Amendment; Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the Maker and the Payee.

15.          Assignment.  No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent shall be void.

 

IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

	  	
QUINPARIO ACQUISITION CORP.

	  
	  	  	  	  
	  	
By:

	
/s/ Jeffry N. Quinn

	  
	  	  	
Name:  Jeffry N. Quinn

	  
	  	  	
Title: President and CEO

	  

 

 

3Unassociated Document

EXHIBIT 4.1

 

SECURED PROMISSORY NOTE

 

	$152,000	June 17, 2013

 

Subject to the terms and conditions of this Secured Promissory Note (this “Note”), for value received, the undersigned, I.E.T., Inc., a corporation incorporated and organized under the laws of the state of Nevada, with its principal place of business located at 4235 Commerce Street, Little River, South Carolina  29566 (the “Maker”), promises to pay to Benchmark Performance Group, Inc., a corporation incorporated and organized under the laws of the state of Texas, with its principal place of business located at 2801 Post Oak Boulevard, Suite 400, Houston, Texas  77056 (the “Payee”), the sum of One Hundred Fifty Two Thousand Dollars ($152,000), together with interest at the rate of seven percent (7%) per annum, which principal and interest are to be paid as set forth below, in such coin or currency of the United States of America as, at the time of payment, shall be legal tender for the payment of public and private debts.  Interest is based on a three hundred sixty-five (365) day year and shall begin to accrue on the date of this Note.

 

1.             Payment.  The unpaid principal amount of this Note, plus all accrued interest, shall be paid in twenty four (24) consecutive monthly payments of $6,805.43 on the first day of each month commencing August 1, 2013 and ending on July 1, 2015 (the “Maturity Date”), as more fully described in the attached amortization schedule.

 

2.             Prepayment.  This Note may be voluntarily prepaid by the Maker in whole or in part, with accrued but unpaid interest to the date of prepayment, at any time without penalty.

 

3.              Events of Default.  For purposes of this Note, an “Event of Default” means any of the following:

 

(a)           The failure to pay any installment of this Note when due;

 

(b)           The entry of a decree or order for relief by a court of competent jurisdiction with respect to the Maker in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or the appointing of a receiver, liquidator, assignee, custodian, trustee or other similar official for the Maker; or the commencement by the Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter in effect; or the taking possession by a receiver, liquidator, assignee, trustee, custodian or other similar official of any substantial part of the assets of the Maker;

 

(c)           The sale of greater than fifty percent (50%) of the assets of the Company, other than any sales of property made by the Company in the ordinary course of business; and

 

(d)           The entry of any judgment or the commencement of any execution, attachment or garnishment proceeding against the Maker which is not satisfied or bonded in a manner reasonably satisfactory to the Payee within ten (10) days after entry of such judgment or commencement of such execution, attachment or garnishment proceeding.

 

  

1

  

 

4.             Rights and Remedies.  Upon the occurrence of any Event of Default, the Payee may, at its option, by written notice to the Maker, declare this Note to be immediately due and payable.  The Maker shall have thirty (30) days to cure any Event of Default resulting from the Maker’s failure to pay any installment of this Note when due.  Upon an Event of Default which is not cured or curable, the outstanding balance hereunder shall be subject to default interest at the rate of nine percent (9%) per annum.

 

The Maker hereby waives presentment, demand for payment, protest, notice of protest, notice of non-payment and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.  The Maker hereby waives any defenses based upon, and specifically assents to, any and all extensions and postponements of the time of payment and all other indulgences or forbearances which may be granted by the Payee.  The rights, remedies, powers and privileges under this Note are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.  This Note shall not be subject to any offset of any kind.  No delay or omission on the part of the Payee in exercising any right hereunder shall operate as a waiver of such right or of any other right of the Payee, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any other occasion.  No single or partial exercise by the Payee of any power hereunder shall preclude any future exercise thereof or the exercise of any other power.

 

In the event that the Payee must institute suit to collect any payment of principal and/or interest owed hereunder, the Payee shall be entitled to recover from the Maker all amounts unpaid hereunder, together with all reasonable costs, charges and expenses of collection, including reasonable attorney’s fees and costs of suit.

 

5.             Severability.  If any provision of this Note shall for any reason be held to be invalid or unenforceable, such provision shall not affect any other provision of this Note that can be given effect without such provision and this Note shall be construed as if such provision had never been contained herein.

 

6.             Security.  The payment of this Note is secured by certain equipment of the Maker as set forth in the Asset Purchase Agreement, dated June 17, 2013, between the Maker and the Payee.

 

7.             Notices.  Except as otherwise provided, all communications to the Maker or Payee provided for herein or with reference to this Note shall be deemed to have been sufficiently given or served for all purposes on the third business day after being sent by certified or registered mail, postage and charges prepaid, to the following addresses: if to the Maker: 4235 Commerce Street, Little River, South Carolina 29566, Attn:  Chief Financial Officer, or at any other address designated by the Maker to Payee in writing; if to Payee:  2801 Post Oak Blvd., Suite 400, Houston, Texas 77056, Attn:  President, or at any other address designated by Payee to the Company in writing.

 

8.              Governing Law; Jurisdiction.  This Note and all transactions contemplated hereby shall be governed, construed and enforced in accordance with the laws of the state of Texas without reference to its judicially or statutorily pronounced rules regarding conflict of laws or choice of law. 

 

  

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9.             Successors and Assigns.   The obligations of this Note are binding on the Maker and its successors and assigns.  The Maker may not assign this Note without the written consent of the Payee; provided, however, that the transfer of any rights or obligations of the Maker under this Note in connection with the merger or other business combination between the Maker and any other entity (whether or not the Maker is the surviving entity) shall not be deemed an assignment and such transfer is expressly permitted under this Agreement.  Any assignment in contravention of this Section 8 shall be void.  The benefits of this Note shall inure to the Payee and its transferees and assigns.

 

10.            Maker Acknowledgments.  The Maker hereby acknowledges receipt of a copy of this Note as executed by the Maker.

 

IN WITNESS WHEREOF, the Maker has duly executed this Note as of the date and year first above written.

 

	 	

I.E.T., INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Thomas S. Gifford	 
	 	

Name:

	

Thomas S. Gifford

	 
	 	Title: 	

Executive Vice President and 

Chief Financial Officer

	 

                                                   

  

3

  

 

Amortization Schedule

	  	
Purchase Price

	 	$	190,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	
Downpayment

	 	$	38,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	
Principal

	 	$	152,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	
Term

	 	 	2.00	 	 	
year

	 	 	
Monthly payment

	 	 	$	6,805.43	 	 	 	 
	  	
Rate

	 	 	7.00	%	 	
annual

	 	 	 	 	 	 	 	 	 	 	 
	  	
Start date

	 	
8/1/2013

	 	 	 	 	 	
Total interest

	 	 	$	11,330.37	 	 	 	 
	  	  	 	 	 	 	 	 	 	 	
Total payments

	 	 	$	163,330.37	 	 	 	 
	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pymt

	
Payment

	 	
Principal

	 	 	
Payment

	 	 	
Interest

	 	 	
Principal

	 	 	
Remaining

	 
	
No.

	
Date

	 	
Before Pymt

	 	 	
Amount

	 	 	
Portion

	 	 	
Portion

	 	 	
Principal

	 
	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
1

	
8/1/2013

	 	$	152,000.00	 	 	$	6,805.43	 	 	$	886.67	 	 	$	5,918.77	 	 	$	146,081.23	 
	
2

	
9/1/2013

	 	 	146,081.23	 	 	 	6,805.43	 	 	 	852.14	 	 	 	5,953.29	 	 	 	140,127.94	 
	
3

	
10/1/2013

	 	 	140,127.94	 	 	 	6,805.43	 	 	 	817.41	 	 	 	5,988.02	 	 	 	134,139.92	 
	
4

	
11/1/2013

	 	 	134,139.92	 	 	 	6,805.43	 	 	 	782.48	 	 	 	6,022.95	 	 	 	128,116.97	 
	
5

	
12/1/2013

	 	 	128,116.97	 	 	 	6,805.43	 	 	 	747.35	 	 	 	6,058.08	 	 	 	122,058.89	 
	
6

	
1/1/2014

	 	 	122,058.89	 	 	 	6,805.43	 	 	 	712.01	 	 	 	6,093.42	 	 	 	115,965.47	 
	
7

	
2/1/2014

	 	 	115,965.47	 	 	 	6,805.43	 	 	 	676.47	 	 	 	6,128.97	 	 	 	109,836.50	 
	
8

	
3/1/2014

	 	 	109,836.50	 	 	 	6,805.43	 	 	 	640.71	 	 	 	6,164.72	 	 	 	103,671.78	 
	
9

	
4/1/2014

	 	 	103,671.78	 	 	 	6,805.43	 	 	 	604.75	 	 	 	6,200.68	 	 	 	97,471.10	 
	
10

	
5/1/2014

	 	 	97,471.10	 	 	 	6,805.43	 	 	 	568.58	 	 	 	6,236.85	 	 	 	91,234.25	 
	
11

	
6/1/2014

	 	 	91,234.25	 	 	 	6,805.43	 	 	 	532.20	 	 	 	6,273.23	 	 	 	84,961.02	 
	
12

	
7/1/2014

	 	 	84,961.02	 	 	 	6,805.43	 	 	 	495.61	 	 	 	6,309.83	 	 	 	78,651.20	 
	
13

	
8/1/2014

	 	 	78,651.20	 	 	 	6,805.43	 	 	 	458.80	 	 	 	6,346.63	 	 	 	72,304.56	 
	
14

	
9/1/2014

	 	 	72,304.56	 	 	 	6,805.43	 	 	 	421.78	 	 	 	6,383.66	 	 	 	65,920.91	 
	
15

	
10/1/2014

	 	 	65,920.91	 	 	 	6,805.43	 	 	 	384.54	 	 	 	6,420.89	 	 	 	59,500.01	 
	
16

	
11/1/2014

	 	 	59,500.01	 	 	 	6,805.43	 	 	 	347.08	 	 	 	6,458.35	 	 	 	53,041.66	 
	
17

	
12/1/2014

	 	 	53,041.66	 	 	 	6,805.43	 	 	 	309.41	 	 	 	6,496.02	 	 	 	46,545.64	 
	
18

	
1/1/2015

	 	 	46,545.64	 	 	 	6,805.43	 	 	 	271.52	 	 	 	6,533.92	 	 	 	40,011.73	 
	
19

	
2/1/2015

	 	 	40,011.73	 	 	 	6,805.43	 	 	 	233.40	 	 	 	6,572.03	 	 	 	33,439.70	 
	
20

	
3/1/2015

	 	 	33,439.70	 	 	 	6,805.43	 	 	 	195.06	 	 	 	6,610.37	 	 	 	26,829.33	 
	
21

	
4/1/2015

	 	 	26,829.33	 	 	 	6,805.43	 	 	 	156.50	 	 	 	6,648.93	 	 	 	20,180.40	 
	
22

	
5/1/2015

	 	 	20,180.40	 	 	 	6,805.43	 	 	 	117.72	 	 	 	6,687.71	 	 	 	13,492.69	 
	
23

	
6/1/2015

	 	 	13,492.69	 	 	 	6,805.43	 	 	 	78.71	 	 	 	6,726.72	 	 	 	6,765.96	 
	
24

	
7/1/2015

	 	 	6,765.96	 	 	 	6,805.43	 	 	 	39.47	 	 	 	6,765.96	 	 	 	0.00	 
	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	  	 	 	 	 	 	$	163,330.37	 	 	$	11,330.37	 	 	$	152,000.00	 	 	 	 	 

 

 

4

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