Document:

a6470256ex10-1.htm

Exhibit 10.1

 

 

SECURED PROMlSSORY NOTE

 

 

	$407, 151.26 	Dated: September 8, 2009

 

FOR VALUE RECEIVED, the undersigned, Sanomedicas International Holdings Inc., a Delaware corporation ("Maker"), hereby promises to pay to the order of CLSS HOLDINGS LLC, a Florida limited liability company, or its assigns ("Holder") the principal of Four Seven Thousand One Hundred Fifty One and Twenty Six Cents ($407,151.26) (as may be increased pursuant to Section 5 hereof, the "Principal Amount")together with interest, on or by the earlier of such date hereinafter referred to the "Maturity Date"): (i) an Event of Default (as defined herein); and (ii) March 7, 2011; as set forth below.

 

1. The unpaid principal amount of this Note together with any unpaid interest shan (unless converted pursuant to Section 3 hereof) become immediately due and payable upcn the Maturity Date. Principal shall be payable in lawful money of the United States of America in immediately available funds, without any deduction, setoff or counterclaim at the address of Holder specified herein.

 

2.  This Note shall bear interest on the upnapid principal amount hereof at the rate of 9% per annum computed on the basis of the actual number of days elapsed and a year of 365 days; provided, however, that upon the occurance and during the continuance of an Event of Default, interest shall accrue on the unpaid principal amount of this Note, from the date of such default (which date shall be calculated, for the purpose of this Section 2 only, without reference to the period of days for the giving notice) until the earlier of the date the principal sum is paid in full or, or if applicable, the date such default is cured, at the rate of 20% per annum (but not higher than the applicable maxmium rate provided by law).

 

3. The Holder of this Note is entitled, at its option, at any time after the issuance of this Note, to convert all or any lesser portion of the outstanding Principal Amount and accrued but unpaid Interest into common stock of the Maker (the "Common Stock") at a conversion price (the "Conversion Price") for each share of Common Stock equal to at a price (subject to adjustment for any merger, stock split, stock divdend or other recapitalization) which is the lesser of: (i) a 45% discount to the average closing bid price for the Common Stock for the three trading days before the day that the Holder requests conversion, and (ii) $0.25 (the "Conversion Price"). The Common stock into which the Note is converted shall be referred to in this agreement as "Conversion Shares." For purpose of this section, the closing bid price of the Common Stock shall be the closing bid price as reported by the Nasdaq Stock Market, or the closing bid price in the over-the-counter market (or other electronic quotation system) or, if the Common Stock is listed on another stock market or exchange, the closing bid price on such exchange as reported in the Wall Street Journal. The Holder may convert this Note into Common Stock by surrending the Note to the Maker, with the form of conversion notice attached to the Note as Exhibit A, executed by the Holder of the Note evidencing such Holder's intention to convert the Note.

 

The Maker will not issue fractional shares or scrip representing fractions of shares of Common Stock on conversion, but the Maker will round the number of shares of Common Stock issuable up to the nearest whole share. The date on which a Notice of Conversion is given shall be deemed to be the date on which the Holder notifies the Maker of its intention to so convert by delivery, by fascmile transmission or otherwise, of a copy of the Notice of Conversion. Notice of Conversion may be sent by facsimile to the Maker, Attn: Mr. Keith Houlihan Fax.: 305-433-5129. Upon receipt of the Notice of Conversion, the Maker shall immediately cause the issuance of the shares of common stock subject to the notice. The Holder will deliver this Note, together with original executed copy of the Notice of Conversion, to the Maker within three (3) business days following the Conversion Date.

  

  

  

 

The principal amount of this Note may not be prepaid without the express written consent of the Holder.

 

4. This Note is secured by that certain Pledge and Security Agreement between the parties hereto and dated as of the date hereof (the "Security Agreement"). This Note and the Security Agreement and any ancillary documents into in connection therewith, each as amended, extended or modified from time to time, are referred to collectively herein as the "Transaction Documents".

 

5. The unpaid Principal Amount of this Note (as increased by the immediately preceding sentence), the accrued interest thereon and all other obligations of Maker hereunder (collectively, the "Obligations"), at the option of Holder, shall become immediately due and payable upon occurrence of of the following events of default ("Events of Default"):

 

(a) Maker shall fail to pay: (i) any principal or accrued interest under this Note within fifteen (15) days after the due date for payment of same; or (ii) any of the other monetary obligations to be paid by it under this Note or any of the other Transaction Documents within fifteen (15) of the due date for paymentof same.

 

(b) Maker shall default in the observance or performance of any material agreements, covenants,  or conditions in this Note, any Transaction Docment or in any other document or instrument referred to herein or therein (including but not limited to the conversion obligations; except the failure to pay obligations) and fail to cure such default within five (5) days of the date Maker obtains notice thereof whether from Holder or otherwise.

 

(c) Any present or future representation or warranty made by or on of Maker whether contained herein or in of the other Transaction Documents shall be false or incorrect in any material respect when such representation or warranty is made.

 

(d) The occurrence ofany ofthe following with respect to Maker: insolvency; appointment of a receiver for property; assignment  for the benefit of creditors or admit in writing his inability to pay his debts as they become due; voluntary commencement of proceeding any or insolvency law; commencement of any proceeding under any bankruptcy or insolvency law and if such involuntary proceeding is not dismissed within 45 days or the relief requested is granted; entry of a court order which enjoins or restrains the conduct ofbusiness in the ordinary course. 

  

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6. Maker shall reimburse Holder for all costs and expenses incurred by Holder and shall pay the reasonable fees, disbursements and out of pocket expenses of counsel to HoIder in connection with the enforcement of Holder's rights hereunder. Maker shall also pay any and all taxes (other taxes on or by net income of the holder of this Note) recording fees, filing charges, search fees or similar items incurred or payable in connection with the execution and delivery of this Note.

 

7. Maker waives demand, presentment, protest and notice of any kind and consents to the release, surrender or substitution of and all security or guarantees for the obligations evidenced hereby or other indulgence with respect to this Note, all without notice.

 

8. Maker shall indemnify, defend and save Holder hannless from and all against any all claims, liabilities, losses, costs and expenses (including, without limitation, reasonable attorneys' fees, disbursements and out of pocket expenses) of any nature whatsoever which may be asserted against or incurred by Holder arising out of in any manner occasioned by or any failure by Maker to perfonn any of his obligations hereunder or pursuant to the Transaction Documents.

 

9.  Maker agrees to do such further acts and to execute and deliver to Holder such additional agreernents, instruments and documents as Holder may reasonably require or deem advisable to effectuate the purposes of this Note, or to confirm to Holder its rights, powers and remedies under this Note.

 

10. The Maker represents, warrants and covenants to the Holder that: (i) the Maker is a Delaware corporation, validly existing and in good standing under the laws of the State of Delaware; (ii) the Maker has full power and authority to conduct its business and to perform its obligations under this Note; (iii)  this Note has been duly and validly authorized, executed and delivered on behalf of the Maker, and constitutes the legal, valid and binding obligation of the Maker enforceable in accordance with its terms; (iv) the execution and delivery of this Note, the incurrence of the obligations set forth and the of the contemplated herein will not violate or constitute a default under, or a breach of, the Maker's articles of incorporation (as amended), by-laws, or any agreement or instrument by which the Maker or its assets is or may be bound, or any law, rule or regulation applicable to or binding on the Maker. or any order, judgment, writ, ruling or decree of any governmental body having jurisdiction over the Maker or any of its assets; and (v) the Maker has, and all times during the term of this Note shall have, all applicable governmental, regulatory and exchange and other licenses, approvals and memberships and has made, and at all times during the term of this Note shall make renew, and keep current, all filings and registrations with governmental bodies required to conduct its business and to perform obligations under this Note.

 

11. (a) Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered or personally by messenger, by recognized overnight courier, telecopied or mailed (by registered or certified mail, postage prepaid) as follows: 

 

(i) If to Maker, one copy to: 

  

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16. This Note and all its provisions, rights and obligations shall be binding upon and shall inure the benefit of the parties hereto and their respective successors, assigns and legal representatives. Nothing herein express or implied is intended or shall be construed to confer upon or to give anyone other than the parties hereto respective heirs, legal representatives and successors any rights or benefits under or by reason of this Agreement and no other party shall have any to enforce any of the provisions of this Agreement.

 

17. If any provision of this Note for any reason be held to be illegal, invalid or unenforceable, such illegality shall not any affect any other provision of this Note, but this Note shall be construed as if such illegal, invalid or unenforceable provision had never been included herein.

 

IN WITNESS WHEREOF, the undersigned execnted this Secured Promissory Note as of the date first written above.

 

 

	ATTEST:  	MAKER: 
	 	Sanomedics International Holdings, Inc.
	 	 
	/s/ Maritzel De Castro	By: /s/ Keith Houlihan
	Maritzel De Castro	Keith Houlihan
	COMMISSION #DD923738	Chairman, President
	EXPIRES: SEP. 09, 2013	 
	www.aaronnotary.com	 

 

  

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EXHIBIT A

Conversion Notice

 

Reference to the Secured Note by SANOMEDICS INTERNATIONAL

HOLDINGS INC. (the ''Note'').

 

In accordance with and pursuant to the Note, the undersigned hereby elects to convert a portion or all of the principal balance of the Note, indicated below into shares of Common Stock (the "Common Stock"), of SANOMEDICS INTERNATIONAL HOLDINGS INC., by tendering the Note below as of the date specified below.

Date of Conversion:

 

Principal Amount to beconverted:             $

 

Please confirm the following information:

 

Conversion Amount:

Conversion Price:

Number of shares of Common Stock to be issued:

 

Please issue the Common Stock into the Note is being converted in the name of the Holder of the Note and to the following address:

 

	Authorization: 	 
	 	Holder: 
	 	CLSS Holdings LLC 
	 	 
	 	By: ___________
	 	Name: Craig Sizer 
	 	Title: President 
	 	19501 W. Country Club Drive #1610 
	 	Aventura, Florida 33180
	 	 
	 	 
	 	 
	 	Date:  
	 	 
	Accepted by: 	 
	 	 
	SANOMEDICS INTERNATIONAL HOLDINGS INC. 	 
	 	 
	By:                                 	 
	Keith Houlihan 	 
	Chairman, President 	 
	Accepted as of:  	 

 

 

  

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Schedule to Exhibit 10.1

This form of Note was used to evidenced the following additional secured obligations of the Company:

 

	Date	 	Principal Amount	 	Payee
	 	 	 	 	 
	December 7, 2009	 	$117,163.79	 	CLSS Holdings, LLC
	April 6, 2010	 	 245,116.00	 	CLSS Holdings, LLC
	June 30, 2010	 	 223,500.00	 	CLSS Holdings, LLC

 

6a6470256ex10-2.htm

Exhibit 10.2

SECURITY AGREEMENT

 

THIS SECURlTY AGREEMENT (this "Agreement") made as of September 8, 2009, between SANOMEDICS INTERNATIONAL HOLDINGS INC., a Delaware corporation (the "Maker"); and CLSS HOLDINGS LLC, " New York corporation, or assigns  ("Holder").

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that Secured Promissory Note ("Note") between the Maker and the Holder dated the date hereof and hereto as Exhibit 1, the Holder loaned certain monies to Maker; and

 

WHEREAS, pursuant to the Note, the Maker is indebted to the Holder in the principal amount of Four Hundred Seven Thousand One Hundred Fifty One Dollars and Twenty Six Cents ($407,151.26) together with interest; and

 

WHEREAS, pursuant to the Note, the Maker hereby pledges to the Holder as collateral for the payment of the Note any and all of Maker's rights, title, and interest in and to the Collateral. defined herein;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto hereby agree as follows:

 

1. Definitions.  As used in this Agreement, the following terms shall the following meanings: 

 

"Collateral" means each and all of the items and rights described in clauses (i) through (xii) of Section 2(a). 

 

"Obligations" means all indebtedness, lisbilities and other obligations of the Maker to Holder under the Transactions Documents.

 

"Transacion Documents" means this Agreement and the Note.

 

"UCC" means the Uniform Commercial Code as the same may, to be in effect in the State of Florida; provided, however, in the event that, by reason of mandatory provisions of law, any or all af the attachment, perfection or priority of the security interest in any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of Florida, the term "UCC" shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions.

 

2. Security Interest, Perfection.

 

(a) In order ro secure the full and punctual payment and performance of the Obligations, the Maker hereby grants to the Holder a continuing security interest in and to all right, title and of the Maker in, to or under the following property, whether now owned or existing or hereafter acquired or arising and regardless of where located, together with all additions thereto, substitutions therefor and replacements thereof: (i) Accounts; (ii) Chattel Paper; (iii) Inventory; (iv) Equipment; (v) Instruments; (vi) Investment Property; (vii) Documents; (viii) Deposit Accounts; (ix) Letter of Credit Rights; (x) General Intangibles, including but not limited to intellectual property; (xi) Supporting Obligations; and (xii) all Proceeds and products of all or any of the Collateral described in clauses (i) through hereof. Each of the capitalized terms in this Section 2(a) not defined herein shall have the meanings ascribed to such terms by Article 9 of the UCC. The security interests granted hereby are only and shall not subject the Holder to, or or in way or modify, any obligation or liability of the Maker with respect to any of the Coll_a1 or any transaction in connection therewith.

  

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(b) In order to perfect the Holder's security interest in the Collateral, the Maker to agrees to do any or all ofthe following:

 

(i) The Maker shall sign financing statements, or other documents reasonably requested by the Holder for the purpoae of perfecting and maintaining the first priority security interest in the Collateral granted pursuant to Section 2(a) above. The Maker authorizes the Holder to file financing statements describing the Collateral and any amendment that adds Collateral covered by this Agreemc:nt, in each case whether or not the Maker's signature appears thereon.

 

(ii) The Maker will cooperate with the Holder in obtaining control with respect to Collateral consisting of: (A) Deposit Accounts; (B) Investment Property; and (C) Letter of Credit Rights.

3. Representations and Warranties. The Maker hereby represents and warrants that:

(a) The Maker is duly formed, validly existing and in good standing as a corporation the laws ofthe State of Delaware, has the power to on its business to own, lease or operate its properties and assets, and is qualified to do business in every jurisdiction in which the nature of business transacted by the Maker or the character of the properties owned or leased by it requires such qualification;

 

(b) The Maker has full power and authority to enter into the Transaction Documents, to execute and deliver such Transaction Documents, and to incur the obligations provided for therein, all of which have been duly authorized by all necessary action.

 

(c) The Transaction Documents are the legal and binding obligations of the Maker that is a party to such Transaction Documents, enforceable accordance with their respective terms.

 

(d) Except for the security interest granted to the Holder pursuant to this Agreement, the Maker is the sole owner of the Collateral and owns such Collateral free and clear of any and all liens or claims of others. No financing statement or other public notice with respect to the Collateral is on file or of record in any public office, except such has been filed in favor of the Holder pursuant to this Agreement.

  

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4. Remedies.

 

(a) Upon the occurrence and during the continuance of any Event of Default (as defined in the Note) the Holder may declare any of the then outstanding monetary Obligations to be innnediately due and payable and shall have, in addition to all other rights and remedies granted to the Holder in this Agreement, alI rights and remedies of a secured party the UCC and other applicable laws.

 

(b) After a declaration of payment by the Holder as provided in Section 4(a) above, the Holder shall the right to exercise all the remedies of a secured under the UCC. The Holder have full power to sell (at sale or public auction), lease, trasnfer or otherwise deal with the Collateral or proceeds thereof in the Holder's own name or that of the Maker. Any and all proceeds actually received from the sale or other disposition or collection of Collateral, and other amounts received in respect of the Collateral the application of which is not otherwise provided for herein, shall be applied by the Holder to the payment of the Obligations. Any surplus thereof which exists after payment and performance in full of the then outstanding monetary Obligations shall be promptly paid over to the Maker or otherwise disposed of in accordance with the UCC or other applicable law. The Maker shall remain liable to Holder for deficiency which exists after any sale or other disposition or collection of Collateral.

 

(c) Subject to paragraph (b) of this Section 4, the Maker waives, to the fullest extent permitted by law: (i) any right of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling of the Collateral or any collateral or security for the Obligations; (ii) any right to require the Holder (A) to proceed against any person or entity, (B) to exhaust any other collateral or secority for any of the Obligations, (C) to pursue any remedy in the Holder's power or (D) to make or give presentments, demands for performance, of protests, notices of nonperformance, protests or notices of dishonor: in connection with any of the Collateral; and (iii) all claims, damages, demands against the Holder arising out of the repossession, retention, sale or application of the of any sale of the Collateral in accordance with the Agreement.

 

5. No Waiver: Cumulative Remedies. No failure on th epart of the Holder to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or patial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights and remedies under this Agreement are cumulative and not exclusive to any rights, remedies, powers and privileges that may otherwise be available to the Holder.

 

6. Binding Effect. This Agreement shall be binding upon, inure the benefit of and be enforceable by the Maker, the Holder and their respective heirs, estates, successors and assigns. The Maker may not assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder without the prior written consent of the Holder. Any such purported assignment, transfer, hypothecation or other conveyance by the without the prior written consent of the Holder shall be null and void. The Maker acknowledges and that in connection with an assignment of the Obligations, to the extent permitted under the Note the Holder may assign all or a portion of its rights and obligations hereunder. Upon any assignment of the Holder's rights hereunder, such assignee shall have, to the extent of such assignment, all rights of a Holder hereunder and may in tum assign such rights (subject to any then applicable provisions ofthe Note). The Maker agrees that, upon any such assignment, such assignee may enforce directly, without joinder of the assigning Holder, the rights of such Holder set forth in this Agreement and any such assignee shall be entitled to enforce the Holder's rights and remedies under this Agreement to the same extent as if he, she or it were a Holder party hereunder.

  

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7. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida without giving effect to any choice or conflict of law provision or rule (whether in the State of Florida or any other jurisdiction) that would cause the application of the laws of any jnrisdiction other the State of Florida, except as required by mandatory provisions of law and to the extent the validity or perfection of the security interests hereunder, or the remedies hereunder, in respect of any Collateral are governed by the law of a jurisdiction other the State of Florida.

8. Jurisdiction, Etc.Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any Florida state court, County of Dade, and any appellate court from any thereof, in any action or proceeding arising out of or to this Agreement or any related agreement or for recognition or enforcement of any judgment. Each of the parties hereto hereby irrevocably unconditionally agrees that jurisdiction and venue such courts would be proper, and hereby waives any objection that such courts are an improper or inconvenient forum. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

9. Entire Agreement; Amendment. This Agreement and the Note contain the entire of the parties with respect to the subject matter hereof. Agreement shal1 not be amended. except by the written agreement of the Maker and the Holder.

10. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under all applicable laws and regulations. If, however, provision of this Agreement shall be prohibited or invalid under aoy such law or regulation in any jurisdiction, it shall, to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective invalid to the eldent of such prohibition or invalidity without the provisions of this Agreement, or the validity or effectiveness of such provision any other jurisdiction.

  

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11. Termination. Upon: (i) payment in full of all then outstanding principal under all of the Note and all interest thereon (or conversion as set forth in the Note), this Agreement shall terminate and be of no further force or effect, and rights to the Collateral shall revert to the Maker and the Holder shall promptly execute and deliver to the Maker such documents and instruments reasonably requested by the Maker as shall be necessary to evidence termination of all security interests given by the Maker to the Holder hereunder. In addition, at any time and from time to time prior to such termination, if any Collateral is sold, leased, exchanged, assigned or otherwise disposed of in accordinace with and as not prohibited by this Agreement, the security interests created hereby in such item (but not in any Proceeds arising from such such sale or exchange) shall terminate immediately without any further action on the part of the Holder, and such Collateral shall no longer be deemed to be "Collateral" for purposes of this Agreement and the covenants contained herein.

 

12. Costs and Expenses. In the event any action is taken to enforce the rights of the Holder under this Agreement, in addition to such other relief as may be granted, the Maker shall be responsible for reasonable costs and expenses, including attorneys' fees incurred in such action unless the of such enforcement action constitutes willful misconduct by the person or entity taking such action.

 

13. Counterparts. This Agreement may be signed upon any number of counterparts with the same effect as if the signatures on all counterparts are upon the same instruments.

  

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

 

 

	WITNESS: 	MAKER: 
	 	Sanomedics International Holdings Inc. 
	 	 
	/s/ Maritzel De Castro	BY: /s/ Keith Houlihan  
	Maritzel De Castro 	Keith Houlihan 
	COMMISSION #DD923735 	Chairman, President 
	EXPIRES: SEP. 09, 2013 	[include notary] 
	www.aaronotary.com 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	HOLDER: 
	 	CLSS HOLDINGS LLC 
	 	 
	 	BY: /s/ Craig Sizer
	 	Craig Sizer 
	 	President 

 

  

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Exhibit 1

Secured Note of Sanomedics International Holdings Inc.

 

 

 

  

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Schedule to Exhibit 10.2

 

This form of Security Agreement was used to secure the following additional obligations of the Company evidenced by our promissory notes, as follows:

 

	Date	 	Principal Note Amount	 	Payee
	 	 	 	 	 
	December 7, 2009	 	$117,163.79	 	CLSS Holdings, LLC
	April 6, 2010	 	245,116.00	 	CLSS Holdings, LLC
	June 30, 2010	 	223,500.00	 	CLSS Holdings, LLC
	June 30, 2010	 	225,000.00	 	Craig Sizer
	June 30, 2010	 	239,994.00	 	Keith Houlihan

 

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