Document:

ex1025a.htm

EXHIBIT 10.25A

 

 

INTERCREDITOR AGREEMENT

 

THIS INTERCREDITOR AGREEMENT (which, together with all extensions and renewals hereof, all modifications and amendments hereto, and all substitutions and replacements herefor, is hereinafter referred to as the "Agreement"), is dated as of April 25, 2008, and is made and entered into by and among THE DIRECTOR OF DEVELOPMENT OF THE STATE OF OHIO, acting for and on behalf of the State of Ohio (the "Director"), whose mailing address is 77 South High Street, P.O. Box 1001, Columbus, Ohio 43216-1001 (Attention: Loan Servicing), and whose telecopier number is (614) 644-1789, THELMA GAULT (the "Lender"), an individual whose mailing address is 91 Shelby Street, Eminence, Kentucky 40019, and whose telecopier number is (502) 845-5653, and TEE GUITAMMER COMPANY, an Ohio corporation (the "Company"), whose mailing address is 6117 Maxtown Road, Westerville, Ohio 43082 (Attention: Mark A. Luden, President & CEO), and whose telecopier number is (815) 346-9532.

 

RECITALS:

 

WHEREAS, the Director has agreed to make a loan to the Company in the maximum principal amount of $1,083,951 (the "State Loan"), which loan is to be secured by, among other things, a security interest in the property described in Exhibit A hereto (the "Collateral") and is to be evidenced by a Loan Agreement dated as of April 25, 2008 between the Director and the Company (the "Director Loan Agreement"; and together with all other documents or instruments evidencing or securing the State Loan hereinafter collectively referred to as the "State Loan Documents"); and

 

WHEREAS, the Lender has made a loan to the Company in the principal amount of $800,000 (the "Lender Loan"), which loan is secured by, among other things, a security interest in the Collateral and is evidenced by a Promissory Note dated as of January 31, 2008 between the Lender and the Company (the "Lender Note"; and together with all other documents or instruments evidencing or securing the Lender Loan hereinafter collectively referred to as the "Lender Loan Documents"); and

 

WHEREAS, the Director and the Lender wish to enter into this Agreement for the purpose of setting forth certain agreements between themselves with respect to the matters set forth herein.

 

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

 

1.            Incorporation of Recitals. The Recitals to this Agreement are incorporated herein by this reference.

 

2.            Definitions. "Hereof;" "herein," "hereunder" and "hereto" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and article, section, subsection, paragraph, item, exhibit, and schedule references are to this Agreement unless otherwise specified. All terms defined in this Agreement in the singular shall have comparable meanings when used in the plural and vice versa unless other specified.

 

 

  

  

  

 

3.             Shared Lien and Security Interest. Irrespective of (a) the time, order or method of attachment or perfection of the respective security interests and/or other liens granted to the Director or the Lender in or on any or all of the property or assets of the Company, including the Collateral, (b) the time or manner of the filing of their respective financing statements, (c) the possession of any portion of the Collateral, (d) the dating, execution or delivery of any agreement granting to the Director or to the Lender any security interests and/or other liens in or on any or all of the assets and/or property of the Company, including the Collateral, (e) the giving of notice or the failing to give notice of any of the above, and (f) any provision of law to the contrary, the Director and the Lender shall share a first lien priority position concerning the Collateral, and their respective security interests in the Collateral shall rank pari passu with respect thereto. Any funds advanced subsequent to the date hereof (a "Future Advance") by the Lender to the Company pursuant to the Lender Loan Documents shall be subordinate to the State Loan and any lien securing a Future Advance shall be subordinate to the lien securing the State Loan.

 

4.             Action to Be Taken Upon Occurrence of Event of Default. Under the terms of the State Loan Documents and the Lender Loan Documents, the occurrence and continuance of an event of default under either the State Loan Documents or the Lender Loan Documents constitutes an event of default under all such State Loan Documents and Lender Loan Documents. The Lender and the Director agree that, upon the occurrence of an event of default under any such document, the Director and the Lender shall immediately consult in good faith with one another in an attempt to agree upon a mutually acceptable course of conduct including, but not limited to, actions to be taken with respect to the Collateral. In the event that the Director and the Lender are unable to so agree, then the Director or the Lender may proceed to take action in accordance with the remedies available to them in the State Loan Documents and the Lender Loan Documents, respectively, for the mutual benefit of each in accordance with Section 5 hereof.

 

5.             Pro Rata Sharing. If, following the occurrence of an event of default by the Company, amounts owing or to become owing under the State Loan Documents or the Lender Loan Documents are accelerated, or any foreclosure, sale, or other disposition or liquidation proceedings concerning the Collateral are commenced by either the Director or the Lender, all payments or amounts realized or received thereafter by the Director or the Lender, which payments or amounts are secured by or derived from the Collateral, shall be shared by the Director and the Lender on a pro rata basis in accordance with the respective principal amounts of their obligations then outstanding. In the event that either the Director or the Lender shall receive any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company of any subordinated obligation before the Director and the Lender are paid in full, then such payment or distribution shall be received and held by the Director or the Lender for the benefit of the other, to the extent of the pro rata interest therein of the other party.

 

6.             Insurance and Eminent Domain Proceeds. To the extent permitted under the State Loan Documents and the Lender Loan Documents, the Director and the Lender will attempt to have all insurance and eminent domain proceeds, if any, with respect to the Collateral made payable jointly to the Director and the Lender, but if payment shall be made to one of the parties to this Agreement, such party will hold the proceeds in trust for the mutual benefit of the other party

pending application in accordance with this Agreement, the State Loan Documents and the Lender Loan Documents. Whenever pursuant to the State Loan Documents, the Lender Loan Documents or this Agreement a procedure for the Director or the Lender to disburse such proceeds is required, the Director and the Lender agree to cooperate with each other in good faith in establishing a mutually acceptable procedure consistent with the provisions thereof and hereof. The Director and the Lender each acknowledge that under the State Loan Documents and the Lender Loan Documents, respectively, they have, under certain circumstances, the right to determine whether such proceeds should be applied to reduce the obligations owing to them. If any such proceeds are so applied, such proceeds will be subject to sharing in the same manner as other proceeds of the Collateral.

 

 

  

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7.            Modification of Loan Documents and this Agreement. Neither the Director nor the Lender shall enter into any modification, amendment or alteration of its respective loan documents which changes the amount of the State Loan or Lender Loan or which changes the payment schedule for the State Loan or Lender Loan without prior written consent of the other party. This Agreement may not be amended or supplemented except by an instrument in writing executed by the Director and the Lender.

 

8.            Prepayments. Subject to the terms hereof, the Director and the Lender shall be entitled to receive and retain all scheduled payments to be made to the Director and the Lender by the Company under the State Loan Documents and the Lender Loan Documents respectively. The Company agrees not to make partial payments or prepayments on either the State Loan or the Lender Loan without prior written consent of the Director and the Lender.

 

9.            Notices. The Lender and the Director shall deliver to the other (a) as soon as practicable after receipt thereof, any notice which it receives in connection with the loan obligations owed to it by the Company, (b) prompt notice of any fact or occurrence, excluding lapse of time but including such things as any purported transfer or removal from the State of Ohio of all or any part of the Collateral, which may impair the priority of the parties shared lien or the perfection of their respective security interests in the Collateral, and (c) at least ten (10) days' prior written notice of any action either of them proposes to undertake under the last sentence of Section 4 hereof or otherwise with respect to the Collateral.

 

10.            Method of Notification. All notices made or required to be given to any party hereto pursuant to this Agreement shall be in writing and shall be sent to the address appearing in the preamble to this Agreement by regular U.S. mail, telecopier or overnight courier service. Each of the parties hereto may change its address for service of notice by giving a notice complying with this Section 10 to the other parties hereto.

 

11.            Termination of Obligations. This Agreement shall automatically terminate upon payment in full of all obligations of the Company to either the Director under the State Loan Documents or the Lender under the Lender Loan Documents; provided, however, that if all or any part of any payment by the Company to the Director or the Lender is thereafter invalidated or set aside or required to be repaid to any person in any bankruptcy or other proceeding, then this Agreement shall be renewed as of such date and shall thereafter continue in full force and effect to the extent of the obligations so invalidated, set aside or repaid. Upon any such termination, all financing statements and liens applicable to the satisfied obligations shall be terminated by the appropriate party (and this obligation shall survive any termination of this Agreement).

 

 

  

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12.            Consents Amendments and Waivers. No amendment, waiver, or consent of any provision of this Agreement shall be effective unless in writing and signed by the Director and the Lender. Each waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of the waiving party or the obligations of the Company to either party in any other respect at any other time.

 

13.            Assignment and Parties in Interest. This Agreement may not be assigned by any party without the advance written consent of the other party hereto. All terms of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the respective successors and permitted assigns of the Director and the Lender.

 

14.            No Third-Party Beneficiaries. This Agreement is solely for the benefit of the Director and the Lender and is not intended to grant any rights, benefits or defenses to or for the benefit of any other person whatsoever. The parties agree that the Company is signing this Agreement solely for the purpose of consenting to and acknowledging the rights and obligations of the Director and the Lender. The Company shall have no rights hereunder.

 

15.            Reservation of Security Interests as Against Third Parties. Nothing contained herein is intended to affect or limit in any way the security interests and/or other liens each of the parties hereto has in any and/or all of the property and assets of the Company, whether tangible or intangible, insofar as the Company and third parties are concerned. The parties hereto specifically reserve all respective security interests and/or other liens and rights to assert such security interests and/or other liens as against the Company and third parties.

 

16.            Headings. The headings of the Sections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part hereof.

 

17.            Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, except for applicable federal law and except as otherwise required by rules of Ohio law that mandate the application of the laws of another forum. This Agreement shall be venued in Franklin County, Ohio, and all of the parties and the Company acknowledge and consent to the jurisdiction of the courts located in such county.

 

18.            Severability. If any provision of this Agreement, or any term, condition, covenant, obligation or agreement contained herein is determined by a court to be invalid or unenforceable, such determination shall not affect any other provision, term, condition, covenant, obligation or agreement, each of which shall be construed and enforced as if such invalid or unenforceable portion were not contained herein. Such invalidity or -anenforceability shall not affect any valid and enforceable application thereof, and each such provision, term, condition, covenant, obligation or agreement, shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.

 

19.            Integration and Controlling Effect. This Agreement sets forth the entire agreement between the parties hereto relating to the matters set forth herein and supersedes all prior understandings and agreements, whether written or oral, between the parties hereto and the Company relating to such matters. If any of the terms or provisions of this Agreement are determined to be in conflict with any of the provisions of the State Loan Documents or Lender Loan Documents, the terms of this Agreement shall control.

 

 

  

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20.            Interpretation. This Agreement shall be deemed to have been prepared jointly by the parties hereto and any uncertainty or ambiguity existing herein shall not be interpreted against any party but shall be interpreted according to the rules for the interpretation of arm's-length agreements.

 

21.            Covenants of the Director. All covenants, obligations and agreements of the Director contained in this Agreement shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future Director in other than his official capacity acting pursuant to applicable law.

 

22.            Counterparts. This Agreement and any amendment hereto may be executed in several counterparts and by each party on a separate counterpart, each of which, when so executed and delivered shall be an original, but all of which together shall constitute but one and the same instrument.

 

 

  

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

 

 

	 	

THE DIRECTOR OF DEVELOPMENT OF THE 

STATE OF OHIO, acting for and on behalf of the 

State of Ohio

	 	 	 
	 	By:  	 
	 	Name: 	 
	 	

Title:

	 
	 	 	 
	 	 	 
	 	 
	 	

Thelma Gault

 

 

 

                                       

The Guitammer Company hereby (i) acknowledges and consents to the terms and conditions of the Agreement, as this Agreement may be amended, modified, supplemented, restated or replaced from time to time, (ii) agrees to execute and deliver such other documents and instruments in connection herewith as may be requested by the Director or the Lender, in form and substance satisfactory to the Director and the Lender, and (iii) agrees to take such other action as either the Director or the Lender may request to effectuate and carry out the provisions of the Agreement. The Company further acknowledges and agrees that the provisions of the Agreement are intended to establish, and define the relative rights and obligations as among the Director and the Lender and shall not be deemed to extend or modify the obligations of the Company to the Director or the Lender.

 

 

	 	

THE GUITAMMER COMPANY

	 	 	 
	 	By:  	 
	 	Name: 	 
	 	

Title:

	 

 

 

 

                                                                      

                                                                       

  

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IN WITNESS WHEREOF, the parties hereto have caused this Intercreditor Agreement to be 'executed and delivered by their respective duly authorized officers as of the date first hereinabove written.

 

 

	 	  

THE DIRECTOR OF DEVELOPMENT OF THE 

STATE OF OHIO, acting for and on behalf of the 

State of Ohio  

	 	 
	 	 
	 	 

 

 

 

 

 

 

 

The Guitammer Company hereby (i) acknowledges and consents to the terms and conditions of the Agreement, as this Agreement may be amended, modified, stmlemented, restated or replaced from time to thee, (ii) agrees to execute and deliver :such other documents and instruments in connection hereWith as may be requested by the Director or the Lender, in form and substance satisfactory to the Director and the Lender, and (iii) agrees to take such other actions as either the Director or the Lender may request to effectuate and carry out the provisions of the Agreement. The Company further acknowledges and agrees that the provisions of the Agreement are intended to establish and define the relative rights and obligations as among the Director and the Lender and shall not be deemed to extend or modify the obligations of the Company to the Director or the Lender.

 

	 	

THE GUITAMMER COMPANY

	 	 
	 	 

 

 

  

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EXHIBIT A

 

COLLATERAL

 

All assets of the Company, including without limitation, all Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Payment Intangibles, Pledged Deposits, Software, Stock Rights and Other Collateral, wherever located, in which the Company now has or hereafter acquires any right or interest, and the proceeds, insurance proceeds and products thereof, together with all books and records, customer lists, credit files, software, computer files, programs, printouts and other computer materials and records related thereto.

 

All capitalized tenus used in this Exhibit A shall have the meaning ascribed to such term. in the Security Agreement between the Director and the Company of even date herewith.ex1025b.htm

EXHIBIT 10.25B

 

COGNOVIT

PROMISSORY NOTE

	
$1,083,951.00

	
April 25, 2008

 

FOR VALUE RECEIVED, The Guitammer Company, an Ohio corporation (the "Company"), promises to pay to the order of The Director of Development of the State of Ohio (the "Director") at 77 South High Street, P.O. Box 1001, Columbus, Ohio 43216-1001 or at such other address as may be designated in writing by the holder, the principal sum of One Million Eighty-Three Thousand Nine Hundred Fifty-One Dollars ($1,083,951.00), or such lesser amount as is the Loan Amount as specified under and defined in the Loan Agreement (the "Loan Agreement") of even date herewith between the Director and the Company, with interest on the amount of principal from time to time outstanding from the applicable Escrow Funding Date(s), as specified under and defined in the Loan Agreement, at the rate of eight percent (8%) per annum until paid (subject to adjustment as set forth in the Loan Agreement), plus a service fee equal to one-quarter of one percent (0.25%) per annum on the amount of principal from time to time outstanding from the applicable Escrow Funding Date(s) until paid. The principal of, interest and monthly service fee on this Note shall be paid in monthly installments which shall be due and payable on the first day of each calendar month (each such date being referred to as a "Payment Date") commencing on the first day of the first calendar month immediately following the first full calendar month after the first Escrow Funding Date (the "First Installment Date") and ending on the first day of the calendar month immediately preceding the sixth (6th) anniversary of the First Installment Date (the "Last Installment Date"); provided, however, that (i) principal and interest payments (but not the monthly service fee) shall be deferred from the first Escrow Funding Date through the eighteenth (18th) Payment Date with the interest accruing during such period being payable as hereinafter provided, (ii) thereafter principal payments (but not interest or the monthly service fee) shall be deferred from the nineteenth (19th) Payment Date through the twenty-fourth (24th) Payment Date, and (iii) thereafter principal, interest (including accrued interest from month one (1) through month eighteen (18) and the monthly service fee shall be paid on the twenty-fifth (25th) Payment Date through the Last Installment Date with the principal being fully amortized over the last forty-eight (48) month period. The amount of the installment payable on the Last Installment Date shall be equal to the balance of the principal sum then outstanding, together with all interest accrued thereon.

 

1. Interest Rate. The annual rate of interest stated herein shall apply to a three hundred sixty (360) day period, and amounts of interest due hereunder shall be computed upon the basis of thirty (30) day months.

 

2. Prepayment Right. The Company may prepay all or any portion of the principal sum hereof at any time without penalty. All such prepayments shall be applied to the payment of the principal installments due hereon in the inverse order of their maturity, and shall be accompanied by the payment of accrued interest on the amount of the prepayment to the date thereof.

 

3. Application of Payments. Unless the Director elects otherwise, all payments and other amounts received by the Director shall be credited first to any charges, costs, expenses and fees due hereunder or payable by the Company under the Loan Agreement or any Loan Documents (as defined below), including without limitation, the Loan Participation Fee (as defined in the Loan Agreement); second, to the monthly service fee(s); third, to accrued but unpaid interest on this Note; fourth, to the principal amount outstanding; and the balance, if any, to the Company.

 

 

  

  

  

 

4. No Commitment for Disbursement. This Note does not constitute a commitment by the Director to make any disbursement(s) of the Loan (as defined in the Loan Agreement) to the Company. The conditions for making such disbursement are set forth in the Loan Agreement. The disbursements made by the Director to the Company, if any, shall not exceed the face amount of this Note and the total amount of such disbursements is limited by and subject to the conditions for making disbursements of the Loan as set forth in the Loan Agreement.

 

5. Security and Agreement. The payment of this Note and all interest and monthly service fees hereon is secured by the Loan Agreement, a Security Agreement and UCC Financing Statements (collectively, the "Security Agreement") of even date herewith from the Company to the Director. The covenants, conditions and agreements contained in the Loan Agreement, Security Agreement and any and all other documents or instruments evidencing or securing the Loan (collectively, the "Loan Documents") are hereby made a part of this Note.

 

6. Default. (a) If default be made in the payment of any installment of principal, interest and monthly service fee under this Note when any such payment shall have become due and payable, or if an Event of Default (as defined in any of the Loan Documents) shall have occurred and be continuing, then, at the option of the Director, the entire principal sum and all interest accrued hereon shall become due and payable at once, without demand or notice.

 

(b)For the period during which a default shall exist in the payment of any amount due and payable under this Note and/or the Loan Agreement (the "Amount Due"), whether by acceleration or otherwise, a late charge equal to five percent (5%) of the Amount Due shall be assessed for each and every month or part thereof during which such default shall exist and paid by the Company to the Director.

 

7. Waivers. None of the following shall be a course of dealing, estoppel, waiver or the like on which any party to this Note or any Loan Documents may rely: (a) the Director's acceptance of one or more late or partial payments; (b) the Director's forbearance from exercising any right or remedy under this Note or any Loan Document; or (c) the Director's forbearance from exercising any right or remedy under this Note or any Loan Document on any one or more occasions. The Director's exercise of any rights or remedies or a part of a right or remedy on one or more occasions shall not preclude the Director from exercising the right or remedy at any other time. The Director's rights and remedies under this Note, the Loan Documents, and at law and in equity are cumulative to, but independent of, each other.

 

8. No Release of Liability. No obligations of any party to this Note shall be affected by (a) any default in this Note or any Loan Document when accepted by the Director or arising any time thereafter; (b) the unenforceability of or defect in this Note or in any Loan Document or any interest conveyed by any Loan Document; (c) any decline in the value of any interest in any property conveyed as security by any Loan Document; or (d) the insolvency, dissolution, liquidation or winding up of affairs of any party to this Note or any other Loan Document or the start of insolvency proceedings by or against any such party. No party to this Note or any Loan Document may enforce any right of subrogation or contribution unless and until this Note is paid in full and waives all rights of subrogation against any party that is subject to insolvency proceedings.

 

 

 

  

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9. Governing Law. This Note is made at Genoa Township, Ohio and shall be construed under the laws of the State of Ohio.

 

10. Time is of the Essence. Time is of the essence in the payment of this Note. All grace periods in the Loan Agreement and any other Loan Documents, if any, that apply to a default shall run concurrently.

 

11. Holidays. If any installment of this Note becomes due on a day on which the Department of Development of the State of Ohio is required or authorized to close, the Company may pay the installment on the next succeeding day on which the Department of Development of the State of Ohio is open.

 

12. Indulgences. With notice, the Director may do or refrain from doing anything affecting this Note or any Loan Document, as many times as the Director desires, including the following (a) granting or not granting any indulgences to anyone liable for payment of this Note or to anyone liable under any Loan Document; (b) releasing any security or anyone or any property from liability on this Note or any Loan Document; and (c) amending this Note or any Loan Document, including extending the time for payment of this Note.

 

13. Notices. All notices, demands, requests or other communications hereunder shall be given in accordance with the Loan Agreement.

 

14. Representation and Warranty Regarding Business Purpose. The Company represents and warrants that the loan evidenced by this Note is for business purposes and constitutes a business loan as that term is used in Section 1343.01 of the Ohio Revised Code and is not primarily for personal, family, household, or agricultural purposes and does not constitute a "consumer loan" or a "consumer transaction."

 

15. Waiver of Demands. AS TO THIS NOTE, THE SECURITY AGREEMENT AND ANY OTHER LOAN DOCUMENTS WHICH MAY SECURE THIS NOTE, THE COMPANY IRREVOCABLY WAIVES TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW ALL APPLICABLE EXEMPTION RIGHTS, WHETHER UNDER THE STATE CONSTITUTION, HOMESTEAD LAWS OR OTHERWISE, AND ALSO IRREVOCABLY WAIVES VALUATION AND APPRAISEMENT, PROTEST, PRESENTMENT AND DEMAND, NOTICE OF PROTEST, DEMAND AND DISHONOR AND NONPAYMENT OF THIS NOTE, AND EXPRESSLY AGREES THAT THE MATURITY DATE OF THIS NOTE, OR ANY PAYMENT DUE HEREUNDER, MAY BE EXTENDED FROM TIME TO TIME AND THAT ANY SECURITY HELD FOR PAYMENT HEREOF MAY BE SUBSTITUTED OR RELEASED AT ANY TIME AND FROM TIME TO TIME WITHOUT IN ANY WAY AFFECTING THE LIABILITY OF THE COMPANY.

 

 

  

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16. Attorneys' Fees and Expenses. The Company shall pay to the Director all reasonable costs and expenses incurred by the Director in enforcing or preserving the Director's rights under this Note, the Loan Agreement or any Loan Document, whether or not an Event of Default has actually occurred or has been declared and thereafter cured, including but not limited to, (a) attorneys' and paralegals' fees and disbursements; (b) the fees and expenses of any litigation, administrative, bankruptcy, insolvency, receivership and any other similar proceeding; (c) court costs; (d) the expenses of the Director, its employees, agents, attorneys and witnesses in preparing for litigation, administrative, bankruptcy, insolvency and other proceedings and for lodging, travel, and attendance at meetings, hearings, depositions, and trials; and (e) consulting and witness fees incurred by the Director in connection with any litigation or other proceeding.

 

17. Attorney Review. The terms and conditions of this Note were reviewed by an attorney for the Company, and said terms and conditions were explained to the appropriate officers/representatives of the Company, who by the execution hereof, hereby acknowledge that they fully understand the terms hereof.

 

18. Severability. If any clause, provision, section or article of this Note is ruled invalid by any court of competent jurisdiction, the invalidity of such clause, provision, section, or article shall not affect any of the remaining provisions hereof.

 

19. Assignment. The Company shall not assign its rights nor delegate its obligations under this Note. 

 

20. Mutual Waiver of Jury Trial. THE COMPANY AND THE DIRECTOR, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS NOTE, THE LOAN AGREEMENT, SECURITY AGREEMENT OR ANY RELATED INSTRUMENT OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREBY, OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF EITHER OF THEM. THIS WAIVER SHALL NOT IN ANY WAY AFFECT THE DIRECTOR'S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED HEREIN, IN THE LOAN AGREEMENT OR ANY RELATED INSTRUMENT OR AGREEMENT. NEITHER THE COMPANY NOR THE DIRECTOR SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY THE COMPANY OR THE DIRECTOR EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY BOTH OF THEM.

 

 

  

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21. Consent to Jurisdiction/Service of Process. The Company hereby irrevocably agrees and submits to the exclusive jurisdiction of any state or federal court located within Franklin County, Ohio, or, at the option of the Director in its sole discretion, of any state or federal court(s) located within any other county, state or jurisdiction in which the Director at any time or from time to time chooses in its sole discretion to bring an action or otherwise exercise a right or remedy, and the Company irrevocably waives any and all objections based on forum non conveniens and/or objection to venue of any such action or proceeding. The Company hereby irrevocably consents that all service of process be made by certified mail directed to the Company at its address set forth in the Loan Agreement for notice purposes and service so made will be deemed completed upon the earlier of the Company's actual receipt thereof or three (3) business days after the same has been deposited in the U.S. Mail, postage prepaid. Nothing contained herein will prevent the Director from servicing process in any other manner permitted by law.

 

22. Warrant of Attorney. With full knowledge of all constitutional rights under the Constitutions of the State of Ohio and the United States of America, the Company hereby irrevocably authorizes any attorney at law, including without limitation, any attorney representing the Director, to appear on the Company's behalf in any court of record in the State of Ohio, or in any other state or territory of the United States, or in any court of the United States, after this Note becomes due and payable; to waive the issuing and service of process and all other constitutional rights to due process of law; to confess judgment against the Company in favor of the Director or other holder of this Note for the amount then appearing due, with interest at the rate provided for herein, together with the costs of suit; to release all errors; and to waive all rights of appeal and stays of execution. The Company hereby consents to the confessing attorney receiving a legal fee from the Director or any other holder of this Note. The Company voluntarily and knowingly irrevocably waives (i) any conflict of interest with respect to the attorney confessing judgment against the Company, and (ii) all rights to notice and hearing prior to judgment being so confessed against the Company.

 

 

WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

 

 

 

 

 

  

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