Document:

Exhibit 10.54

 

Dated:  January 3, 2005

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

 

	
  No. 1

  	
  $175,000

  

 

 

DIVERSIFIED
CORPORATE RESOURCES, INC.

 

PROMISSORY
NOTE

 

This Note (this “Note”) is
issued by Diversified Corporate Resources, Inc., a Texas corporation (the “Obligor”), to the James R. Colpitt Trust (the
“Holder”).

 

FOR VALUE RECEIVED, the Obligor hereby promises to pay to the
Holder or its registered assigns the principal sum of $175,000, together with
accrued interest on the following terms:

 

Payments.  Payments of principal and
interest (interest shall be calculated as set forth in the following section)
on the outstanding principal balance hereof shall be due and payable in a
single installment upon the earlier of (i) February 17, 2005, or (ii) the
date upon which Obligor receives cash proceeds of at least $177,000 resulting
from one or more cash payments made by Raytheon Corporation on certain accounts
receivable owed to Obligor or its subsidiary as of the date of this Note (the “Maturity Date”).  This Note may be prepaid at any time without
penalty.  All payments made hereunder
shall be credited first to accrued and unpaid interest, and the balance, if
any, to principal.  Prepayment in whole
shall be accompanied by an amount of interest equal to the interest accrued
thereon to the date of receipt of such prepayment in immediately available
funds.

 

Interest.  Interest shall accrue on the
outstanding principal balance hereof at an annual rate equal to twelve percent
(12.0%).  Interest shall be calculated on
the basis of a 360-day year and the actual number of days elapsed, to the
extent permitted by applicable law.

 

This Note is subject to the following additional provisions:

 

 

Section 1.                                          Events of Default.

 

(a)                                  An “Event
of Default”, wherever used herein, means any one of the following
events (whatever the reason and whether it shall be voluntary or involuntary or
effected by operation of law or pursuant to any judgment, decree or order of
any court, or any order, rule or regulation of any administrative or governmental
body):

 

(i)                                     Any default in the payment of the principal
of, interest on or other charges in respect of this Note, as and when the same
shall become due and payable; or

 

(ii)                                  The Obligor shall commence, or there shall be
commenced against the Obligor under any applicable bankruptcy or insolvency
laws as now or hereafter in effect or any successor thereto, or the Obligor commences
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 Obligor or
there is commenced against the Obligor any such bankruptcy, insolvency or other
proceeding which remains undismissed for a period of 61 days; or the Obligor is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the Obligor 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 61 days; or
the Obligor makes a general assignment for the benefit of creditors; or the Obligor
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 Obligor shall call a
meeting of its creditors with a view to arranging a composition, adjustment or
restructuring of its debts; or the Obligor shall by any act or failure to act
expressly indicate its consent to, approval of or acquiescence in any of the
foregoing; or any corporate or other action is taken by the Obligor for the
purpose of effecting any of the foregoing.

 

(b)                                 During the time that any portion of this Note
is outstanding, if any Event of Default occurs and is continuing, the full
principal amount of this Note, together with interest and other amounts owing
in respect thereof, to the date of acceleration shall become at the Holder’s
election and upon 10 days written notice to the Obligor, immediately due and
payable in cash.  The Holder need not
provide and the Obligor hereby waives any presentment, demand, protest or other
notice of any kind, and the Holder may immediately and without expiration of
any grace period enforce any and all of its rights and remedies hereunder and
all other remedies available to it under applicable law. 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.

 

Section 2.                                          Notices.  Any notices, consents, waivers
or other communications required or permitted to be given under the terms
hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered
personally; (ii) three (3) days after mailing, when sent by registered
or certified U.S. Mail, postage prepaid, return receipt requested; or (iii) one
(1) Business Day (defined below) after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same.  The addresses
for such communications shall be:

 

	
  If to Obligor:

  	
  Diversified Corporate
  Resources, Inc.

  
	
   

  	
  Search Plaza

  
	
   

  	
  10670 N. Central Expwy., Suite 300

  
	
   

  	
  Attn: J. Michael Moore,
  CEO

  

 

2

 

	
  If to the Holder:

  	
  The James R. Colpitt Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

or at such other address and/or facsimile number and/or to the
attention of such other person as the recipient party has specified by written
notice given to each other party three (3) business days prior to the
effectiveness of such change.  Written
confirmation of receipt (i) given by the recipient of such notice,
consent, waiver or other communication, (ii) mechanically or
electronically generated by the sender’s facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (iii) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

 

Section 3.                                          Definitions.  For the purposes hereof, the
following terms shall have the following meanings:

 

“Business
Day” means any day except Saturday, Sunday and any day which shall be a
federal legal holiday in the United States or a day on which banking
institutions are authorized or required by law or other government action to
close.

 

“Person”
means a corporation, an association, a partnership, organization, a business,
an individual, a government or political subdivision thereof or a governmental
agency.

 

Section 4.                                          If this Note is mutilated, lost, stolen or
destroyed, the Obligor shall execute and deliver, in exchange and substitution
for and upon cancellation of the mutilated Note, or in lieu of or in
substitution for a lost, stolen or destroyed Note, a new Note for the principal
amount of this Note so mutilated, lost, stolen or destroyed but only upon
receipt of evidence of such loss, theft or destruction of such Note, and of the
ownership hereof, and indemnity, if requested, all reasonably satisfactory to
the Obligor.

 

Section 5.                                          This Note shall be governed by and construed
in accordance with the laws of the State of Texas, without giving effect to
conflicts of laws thereof.  Venue for any
action arising hereunder shall be proper exclusively in Dallas County, Texas.

 

Section 6.                                          Should any litigation be commenced between
the parties hereto or their personal representatives concerning any provision
of this Note or the rights and duties of any person in relation thereto, the
party prevailing in such litigation shall be entitled to, in addition to such
other relief that may be granted, its reasonable attorneys’ fees and costs in
such litigation.

 

Section 7.                                          Any waiver by the Holder of a breach of any
provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of
this Note. The failure of the Holder to insist upon strict

 

3

 

adherence to any term of this Note on one or more occasions shall not
be considered a waiver or deprive that party of the right thereafter to insist
upon strict adherence to that term or any other term of this Note. Any waiver
must be in writing.

 

Section 8.                                          If any provision of this Note is invalid, illegal,
or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless
remain applicable to all other persons and circumstances. If it shall be found
that any interest or other amount deemed interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder
shall automatically be lowered to equal the maximum permitted rate of interest.
The Obligor covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Obligor from paying all or any portion of
the principal of or interest on this Note as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this indenture, and the Obligor (to the extent
it may lawfully do so) hereby expressly waives all benefits or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has
been enacted.

 

Section 9.                                          Whenever any payment or other obligation
hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

Section 10.                                   No Usury.  The Obligor does not intend or
expect to pay, nor does the Holder intend or expect to charge, collect, or
accept, any interest greater than the highest legal rate of interest that may
be charged under any applicable law. 
Should the acceleration hereof or any charges made hereunder result in
the computation or earning of interest in excess of such legal rate, any and
all such excess shall be and the same is hereby waived by the Holder, and any
such excess shall be credited by the Holder to the principal balance hereof.

 

 

IN
WITNESS WHEREOF, the Obligor has executed this Secured
Promissory Note as of the date first set forth above.

 

	
   

  	
  THE OBLIGOR:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  Michael Moore

  	
   

  
	
   

  	
   

  	
  J. Michael
  Moore

  
	
   

  	
   

  	
  Chief
  Executive Officer

  

 

4Exhibit 10.55

 

Dated:  March 1, 2005

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

	
  No. 1

  	
  $1,000,000

  

 

DIVERSIFIED
CORPORATE RESOURCES, INC.

 

LINE OF
CREDIT PROMISSORY NOTE

 

This Line of Credit Promissory Note (this “Note”) is issued by Diversified Corporate Resources, Inc.,
a Texas corporation (the “Obligor”),
to the James R. Colpitt Trust (the “Holder”).

 

FOR VALUE RECEIVED, the Obligor hereby promises to pay to the
Holder or its registered assigns up to the principal sum of $1,000,000,
together with accrued interest on the following terms:

 

1.                                       Funding. 
Subject to the terms of this Note, the Holder shall loan the Obligor up
to $1,000,000.  Funding shall occur
within 3 business days from the Holder’s receipt of a written draw request from
an authorized officer of the Obligor. 
The Obligor shall have the right, but shall not be required, to from
time to time make partial repayment of the outstanding principal balance hereof
prior to maturity, and in such event, the Obligor shall have the right to
request re-advancement of such partial repayments in accordance with the terms
hereof.  Notwithstanding any other
provision of this Note, a condition precedent to the Holder’s obligation to
loan the Obligor additional amounts under this Note shall be (i) the
Holder’s receipt of any financial information of the Obligor reasonably
requested by the Holder, and (ii) the Holder’s determination, in its sole
but reasonable discretion, that the Obligor’s financial condition has not
declined materially from the date hereof.

 

2.                                       Payments. 
Payments of principal and interest (interest shall be calculated as set
forth in the following section) on the outstanding principal balance advanced
to the Obligor shall be due and payable in a single installment on March 1,
2006 (the “Maturity Date”);
provided, however, that the Obligor shall have the right, on or before the
Maturity Date, if an Event of Default does not exist at such time, upon payment
of an extension fee to the Holder in an amount

 

 

equal
to 5% of the then-outstanding principal balance of the Note, to extend the
Maturity Date to March 1, 2007. 
This Note may be prepaid at any time without penalty.  All payments made hereunder shall be credited
first to accrued and unpaid interest, and the balance, if any, to
principal.  Prepayment in whole shall be
accompanied by an amount of interest equal to the interest accrued thereon to
the date of receipt of such prepayment in immediately available funds.

 

3.                                       Interest.  An
origination fee of $2,000 has been paid to the Holder prior to the date of this
Note.  Commencing on March 1, 2005, interest
shall accrue on the outstanding principal balance hereof at an annual rate
equal to twelve percent (12.0%). 
Interest shall be calculated on the basis of a 360-day year and the
actual number of days elapsed, to the extent permitted by applicable law.

 

4.                                       Warrants.  For
each draw request that the Holder funds under this Note, the Obligor shall
issue the Holder a warrant to purchase 0.25 shares of the Obligor’s common
stock (“Common Stock”) for each $1.00 loaned on
such funding date, rounded down to the nearest share to avoid fractional
shares, with an exercise price equal to $.02 above the closing market price of
the Common Stock on the trading day of such funding, and such warrants shall each
expire three years from their respective issuance dates.  Each time that that funding of a particular
draw equals or exceeds $150,000, including the initial funding of $150,000 that
the Holder has provided as of the date of this Note (the “Initial
Funding”), the Obligor shall issue the Holder an additional warrant
to purchase an aggregate of 25,000 shares of Common Stock, under the same terms
as the warrant required under the preceding sentence.

 

5.                                       Guaranty/Security/Transaction
Fee.  J. Michael Moore, the Chairman and CEO of the
Obligor (the “Guarantor”), hereby guaranties all
of the Obligor’s obligations to the Holder under this Note, including the
Initial Funding; provided, however, that the Guarantor’s liability shall be
solely in rem, Guarantor will have no personal
liability for the Obligor’s obligations under the Note under any circumstances,
and Guarantor’s obligations under this Section 5 shall be fully satisfied
by the collateral pledged to the Holder under that certain Security Agreement (so
called herein) between the Holder and the Guarantor, executed in connection
with this Note.  In addition, the
Guarantor hereby transfers to the Holder, as a transaction fee, a 2.5% working
interest in the Winchester C oil well, a/k/a the Yahwah Farms Partnership (in
addition to the 20.0% working interest pledged as collateral under the Security
Agreement), the lease of which is attached to the Security Agreement.  The Guarantor agrees to take such actions,
including the execution of additional documents, as are necessary to transfer
such interest to the Holder.

 

6.                                       Events of Default.  An “Event of Default”, wherever used herein,
means any default in the payment of the principal of, interest on or other
charges in respect of this Note, as and when the same shall become due and
payable.

 

7.                                       Notices.  Any notices, consents, waivers
or other communications required or permitted to be given under the terms
hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered
personally; (ii) three (3) days after mailing, when sent by registered
or certified U.S. Mail, postage prepaid, return receipt requested; or (iii) one
(1) Business Day (defined below) after deposit with a nationally
recognized overnight delivery

 

2

 

service, in each case properly addressed to the party to receive the
same.  The addresses for such
communications shall be:

 

 

	
  If to Obligor:

  	
   

  
	
   

  	
  Diversified Corporate
  Resources, Inc.

  Search Plaza

  
	
   

  	
  10670 N. Central Expwy., Suite 300

  
	
   

  	
  Attn: J. Michael Moore,
  CEO Dallas, Texas 75231

  
	
   

  	
   

  
	
   

  	
   

  
	
  With Copy to:

  	
  J. Paul Caver, Esq.

  The Caver Law Firm

  2724 Routh Street

  Dallas, Texas 75201

  
	
   

  	
   

  
	
  If to the Holder:

  	
  The James R. Colpitt Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  With Copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or at such other address and/or to the attention of such other person
as the recipient party has specified by written notice given to each other
party three (3) business days prior to the effectiveness of such
change.  Written confirmation of receipt (i) given
by the recipient of such notice, consent, waiver or other communication, or (ii) provided
by a nationally recognized overnight delivery service, shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), or (ii) above,
respectively.

 

8.                                       Definitions.  For the purposes hereof, the
following terms shall have the following meanings:

 

“Business
Day” means any day except Saturday, Sunday and any day which shall be a federal
legal holiday in the United States or a day on which banking institutions are
authorized or required by law or other government action to close.

 

“Person”
means a corporation, an association, a partnership, organization, a business,
an individual, a government or political subdivision thereof or a governmental
agency.

 

9.                                       If this Note is mutilated, lost, stolen or
destroyed, the Obligor shall execute and deliver, in exchange and substitution
for and upon cancellation of the mutilated Note, or in lieu

 

3

 

of or in substitution for a lost, stolen or destroyed Note, a new Note
for the principal amount of this Note so mutilated, lost, stolen or destroyed
but only upon receipt of evidence of such loss, theft or destruction of such
Note, and of the ownership hereof, and indemnity, if requested, all reasonably
satisfactory to the Obligor.

 

10.                                 This Note shall be governed by and construed
in accordance with the laws of the State of Texas, without giving effect to
conflicts of laws thereof.  Venue for any
action arising hereunder shall be proper exclusively in Dallas County, Texas.

 

11.                                 Should any litigation be commenced between
the parties hereto or their personal representatives concerning any provision
of this Note or the rights and duties of any person in relation thereto, the
party prevailing in such litigation shall be entitled to, in addition to such
other relief that may be granted, its reasonable attorneys’ fees and costs in
such litigation.

 

12.                                 Any waiver by the Holder of a breach of any
provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of
this Note. The failure of the Holder to insist upon strict adherence to any
term of this Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Note. Any waiver must be in writing.

 

13.                                 If any provision of this Note is invalid, illegal,
or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless
remain applicable to all other persons and circumstances. If it shall be found
that any interest or other amount deemed interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder
shall automatically be lowered to equal the maximum permitted rate of interest.
The Obligor covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Obligor from paying all or any portion of
the principal of or interest on this Note as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this indenture, and the Obligor (to the extent
it may lawfully do so) hereby expressly waives all benefits or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has
been enacted.

 

14.                                 Whenever any payment or other obligation
hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

15.                                 No Usury.  The Obligor does not intend or
expect to pay, nor does the Holder intend or expect to charge, collect, or
accept, any interest greater than the highest legal rate of interest that may
be charged under any applicable law. 
Should the acceleration hereof or any charges made hereunder result in
the computation or earning of interest in excess of such legal rate, any and all
such excess shall be and the same is hereby waived by the Holder, and any such
excess shall be credited by the Holder to the principal balance hereof.

 

[Remainder of page intentionally left blank.]

 

4

 

IN WITNESS WHEREOF, the Obligor and the Guarantor have each executed this Line of Credit Promissory
Note as of the date first set forth above.

 

	
   

  	
  THE OBLIGOR:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  Michael Moore

  	
   

  
	
   

  	
   

  	
  J. Michael
  Moore

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ J. Michael Moore

  	
   

  
	
   

  	
  J. Michael Moore

  

 

5

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