Document:

Filed by Bowne Pure Compliance

 

Exhibit
10.2

FOC FINANCIAL LIMITED PARTNERSHIP

2025 S. AIRPORT BLVD.

CHANDLER, ARIZONA 85249

June 22, 2007

ProLink Solutions, LLC

410 S. Benson Lane

Chandler, Arizona 85224

Attn: Lawrence Bain

			
	         Re:	 	Amended and Restated $1,500,000 Factoring Line of Credit Loan to PROLINK
SOLUTIONS, LLC, a Delaware limited liability company from FOC FINANCIAL LIMITED
PARTNERSHIP, an Arizona limited partnership

Gentlemen:

This amended and restated letter agreement (the “Agreement”), when executed by PROLINK
SOLUTIONS LLC, a Delaware limited liability company (“Borrower”), and FOC FINANCIAL LIMITED
PARTNERSHIP, an Arizona limited partnership (“Lender”), will constitute a binding agreement
enforceable by and against the parties hereto and will supersede that certain letter agreement
dated June 6, 2007 (the “Original Agreement”) as evidenced by that certain Revolving Promissory
Note dated June 6, 2007 (the “Original Note”) between the parties. Borrower acknowledges that the
starting principal balance under this Agreement and the Note (as defined below) includes any and
all principal and accrued, but unpaid interest, from advances made by Lender to Borrower under the
Original Agreement and the Original Note.

Lender, in its sole discretion, may make advances (the “Loan”) to Borrower from time to time
in an amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) (the “Maximum
Amount”) on the terms and conditions hereinafter set forth. The Loan shall be evidenced by that
certain Amended and Restated Revolving Promissory Note of even date herewith in the principal
amount of One Million Five Hundred Thousand Dollars ($1,500,000) or such lesser amounts that may be
outstanding from time to time (the “Note”). Principal and interest shall be due and payable in
accordance with the terms and conditions of the Note. This Agreement, the Note, any security
documents delivered, executed or filed upon a Default (as defined below), and any other instruments
now or hereafter executed and delivered in connection with the Loan, as the same may be amended,
supplemented or otherwise modified and in effect from time to time, are hereinafter collectively
referred to as the “Loan Documents”.

The Loan shall constitute a factoring line of credit loan and advances may be borrowed,
repaid, and reborrowed on a revolving basis through the Funding Termination Date (as defined in the
Note). Although the outstanding principal balance of the Loan may be zero from time to time, the
Loan Documents will remain in full force and effect until all obligations are paid and
performed in full. Upon the occurrence of an event of default under this Agreement or the Note,
Lender may suspend or terminate its obligation to make advances of the Loan.

 

 

 

From time to time prior to the Funding Termination Date, Borrower may request that Lender fund
advances under this Loan in an amount equal to (i) 100% of any accounts receivable to a foreign
purchaser (the “Foreign Receivables”), and (ii) 90% of the base purchase price of a Prolink GPS
system (a “Prolink System”), but in either case, no more than an amount that when added to the then
outstanding principal balance of the Loan would exceed the Maximum Amount (the “Advance Amount”).
Borrower shall provide Lender with a written request detailing the Advance Amount and whether the
Advance Amount relates to the Foreign Receivables or a Prolink System (a “Funding Request”).
Lender will endeavor to notify Borrower within two (2) business days after receipt of a Funding
Request whether it intends to loan the Advance Amount with respect to such Funding Request. If
Lender elects, in its sole discretion, to loan an Advance Amount to Borrower related to Foreign
Receivables, Lender shall make such advances within two (2) business days after notifying Borrower
of its intent to fund the Advance Amount. If Lender elects, in its sole discretion, to loan an
Advance Amount related to a Prolink System, Lender shall make such advances within two (2) business
days after the conditions precedent set forth in the following paragraph have been satisfied with
respect to such Prolink System (a “Funded Prolink System”).

Lender’s obligation to make advances with respect to a Funded Prolink System is subject to the
following conditions precedent: (a) approval by Lender of an executed Pay for Play or Lease
Agreement between Borrower’s financing source and an approved golf course customer (a “Golf Course
Customer”) for the Funded Prolink System; (b) receipt by Lender from Borrower of a Funding
Request; (c) confirmation of shipment of the Funded Prolink System to Borrower or the Golf Course
Customer; and (d) such other documents as Lender in its reasonable discretion may require, each in
form and substance reasonably satisfactory to Lender. At such time as all of the conditions
precedent to an advance have been satisfied, Borrower will provide Lender a written certification
to such effect, together with such back-up documentation as Lender shall reasonably request.

In consideration for Lender making this credit vehicle available to Borrower, Prolink Holdings
Corp. (“Prolink Holdings”), the parent of Borrower, shall deliver to Lender, concurrent with the
signing of this Agreement, a warrant to purchase 300,000 shares of Prolink Holdings common stock
priced at the market value of the common stock as of 5 p.m. on the date of this Agreement and
having an exercise period of 10 years from the date of this Agreement.

As additional consideration for Lender making any advances to Borrower, Borrower agrees to pay
to Lender a loan origination fee (the “Loan Fee”) equal to one percent (1%) of the Advance Amount
with respect to each Funded Prolink System, which is fully earned and non-refundable upon the
making of the advance, and will be withheld by Lender from the Advance Amount.

 

 

 

Borrower shall repay Lender an Advance Amount with respect to the UK Receivables within sixty
(60) days after Borrower’s receipt of such Advance Amount. Borrower shall repay Lender an Advance
Amount with respect to each Funded Prolink System on or before the earlier
of: (i) three (3) business days after confirmation of good, collected funds by Borrower from the
sale of such Funded Prolink System; or (ii) thirty (30) days after Borrower’s receipt of such
Advance Amount if Borrower has not received confirmation of credit approval by Borrower’s funding
source of the Golf Course Customer intended to receive such Funded Prolink System.

If Borrower’s financing source notifies Borrower that it does not intend to pay for a Funded
Prolink System or Borrower has reason to believe that the funding source does not intend to pay for
a Funded Prolink System or payment for a Funded Prolink System is more than 60 days past due,
Borrower shall notify Lender of such breach or anticipatory breach by the funding source.

If any Funded Prolink System is rejected, returned, or recovered, Borrower shall use its best
efforts to remarket such Funded Prolink System. As long as it is commercially feasible, such
rejected, returned, or recovered Funded Prolink System shall be given priority over other Prolink
Systems. If the rejected, returned, or recovered Funded Prolink System is defective, or otherwise
unsaleable, Borrower shall replace such defective or unsaleable Funded Prolink System with another
Prolink System of equal quality. If any such Funded Prolink System or replacement Prolink System
is not remarketed and shipped to a new Golf Course Customer within 60 days from the date of the
notice to Lender in the immediately preceding paragraph, Borrower shall notify Lender that the
Funded Prolink System or replacement Prolink System has not been remarketed and shipped.

Upon any uncured default by Borrower under the Loan Documents (a “Default”), Borrower will
grant to Lender (i) a purchase money security interest in all of Borrower’s right, title, and
interest in and to the Funded Prolink Systems and any accounts and proceeds derived therefrom to
secure the unpaid Advance Amounts related to the Funded Prolink Systems, and (ii) a security
interest in all of Borrower’s right, title and interest in and to the Freign Receivables to secure
the unpaid Advance Amounts related to the Foreign Receivables (the “Collateral”). To the extent
allowable under applicable law, the Uniform Commercial Code of Arizona, Arizona Revised Statutes
47-1101, et seq., shall govern the perfection of the security interest granted herein. Upon a
Default, Borrower will irrevocably authorize Lender at any time and from time to time after such
Default to file in any Uniform Commercial Code jurisdiction any initial financing statements and
amendments thereto to (a) indicate that Lender has a perfected security interest in the Collateral
and (b) contain any other information required by Article 9 of the Uniform Commercial Code for the
sufficiency or filing office acceptance of any financing statement or amendment. Upon a Default,
Borrower shall execute such other additional documents, instruments and agreements as requested by
Lender to evidence or better perfect the security granted herein. The address for notices to
Lender is FOC Financial Limited Partnership, 2025 South Airport Boulevard, Chandler, Arizona
85249, Attn: Steven Fisher, Facsimile: 480-782-9152. Lender may change its address for notices by
delivering written notice to Borrower at its address as listed above.

The terms and provisions of this Agreement shall be construed in accordance with the laws of
the State of Arizona.

 

 

 

The parties hereto agree that the time is of the essence as to each and every provision of
this agreement.

[Signatures appear on the following page]

 

 

 

Kindly indicate your understanding and agreement with the terms and conditions of this letter
agreement by signing the enclosed copy of this agreement and returning same to us.

	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 
	 	 	FOC FINANCIAL LIMITED PARTNERSHIP, an
	 	 	Arizona limited partnership
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

CONSENTED AND AGREED TO:

BORROWER:

PROLINK SOLUTIONS, LLC., a Delaware

limited liability company

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:Filed by Bowne Pure Compliance

 

Exhibit
10.21

AMENDED AND RESTATED REVOLVING PROMISSORY NOTE

 

			
	$1,500,000.00
	 	June 22, 2007

FOR VALUE RECEIVED, ProLink Solutions, LLC, a Delaware limited liability company
(“Borrower”), hereby promises to pay to the order of FOC Financial Limited
Partnership, an Arizona limited partnership, or its endorsees, successors or assigns (the
“Holder”), the principal sum of One Million Five Hundred Thousand Dollars
($1,500,000.00) (the “Maximum Amount”), or so much thereof as may be advanced from time to
time by Holder, in immediately available funds and in lawful money of the United States of America,
together with interest on the outstanding balance thereof, all as provided in this Amended and
Restated Revolving Promissory Note (this “Note”).

1. Loan Agreement. This Note is made and given in connection with that certain
Amended and Restated Letter Agreement dated June 19, 2007 between Borrower and Holder (the “Loan
Agreement”), and all of the terms, conditions and definitions contained in the Loan Agreement are
incorporated in this Note by reference as if fully stated herein. This Note supersedes that
certain Revolving Promissory Note dated June 6, 2007 (the “Original Note”) between the parties.
Borrower acknowledges that the starting principal balance under this Note includes any and all
principal and accrued, but unpaid interest, from advances made by Lender to Borrower under the
Original Note.

2. Advances. Upon written request of Borrower to Holder from time to time and upon
compliance with the terms and conditions of the Loan Agreement, Holder may, in its sole discretion,
advance funds to Borrower under this Note not to exceed the Maximum Amount in one or more advances
at any time and from time to time from the date hereof through and including June 19, 2009 (the
“Funding Termination Date”). The principal amount of this Note may be borrowed, repaid and
reborrowed from time to time. Holder may request documentation or information, as Holder shall
reasonably require as a condition to each such advance.

3. Interest. The outstanding principal balance of this Note shall bear simple
interest at fifteen percent (15%) per annum (the “Regular Rate”), computed on the basis
that each month contains thirty (30) days and each year contains three-hundred and sixty (360)
days.

4. Repayments of Advances and Interest. The accrued and unpaid interest on the
principal balance of this Note outstanding from time to time, shall be paid in monthly interest
only installments on the last day of any month in which any advances are outstanding; provided,
however, that the principal amount plus accrued and unpaid interest on an Advance Amount relating
to: (a) the Foreign Receivables shall be repaid by Borrower within sixty (60) days after Borrower’s
receipt of the Advance Amount; and (b) a particular Funded Prolink System shall be repaid by
Borrower on or before the earlier of (i) three (3) business days after confirmation by Borrower of
its receipt of good, collected funds from the sale of such Funded Prolink System, or (ii) thirty
(30) days after Borrower’s receipt of such Advance Amount if Borrower has not received confirmation
of credit approval by Borrower’s funding source of the Golf Course Customer intended to receive
such Funded Prolink System.

 

 

 

5. Payment of Principal; Maturity Date. Borrower agrees to pay in full the entire
outstanding principal balance of this Note, accrued and unpaid interest, and all other unpaid
amounts owing under this Note on or before the Funding Termination Date (the “Maturity
Date”).

6. Optional Prepayments. The indebtedness evidenced by this Note may be prepaid in
whole or in part at any time without premium or penalty.

7. Manner of Payment. Payment(s) of principal, interest and other amounts due under
this Note shall be made on the date due in lawful money of the United States of America at 2025
South Airport Boulevard, Chandler, Arizona 85249, or to such other place of payment as Holder may
designate in writing. All such payments shall be made without any deduction whatsoever, including,
without limitation, any deduction for set-off, recoupment, counterclaim, or taxes. Any payments
due hereunder that are due on a day that is not a business day shall be payable on the immediately
succeeding business day, together with all accrued and unpaid interest through the actual date of
payment. All payments made hereunder shall be applied first to the payment of the interest then
accrued and due on the unpaid principal balance of this Note and any other charges or fees due
under this Note or the Loan Agreement and the remainder shall be applied to the reduction of the
unpaid principal.

8. Security. Upon any Default under the Loan Agreement or this Note, Borrower will
grant Holder a purchase money security interest in all of Borrower’s right, title, and interest in
and to the Funded Prolink Systems and any accounts and proceeds derived therefrom to secure the
unpaid Advance Amounts related to the Funded Prolink Systems, and a security interest in all of
Borrower’s right, title and interest in and to the UK Receivables to secure the unpaid Advance
Amounts related to the UK Receivables.

9. Default. An “Event of Default” or a “Default” under this Note
shall exist (i) if Borrower fails to make any payment of interest when due; (ii) if Borrower fails
to repay any Advance Amount plus accrued and unpaid interest thereon when due; (iii) upon the
occurrence of an event of default under the Loan Agreement; (iv) if Borrower commences a voluntary
case or other proceeding seeking liquidation, reorganization or other relief with respect to itself
or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
it or any substantial part of its property, or consents to any such relief, or to the appointment
of, or taking possession by, any such official in an involuntary case or other proceeding commenced
against it, or makes a general assignment for the benefit of creditors, or fails generally to pay
its debts as they become due, or takes any limited liability company action to authorize any of the
foregoing; (v) if an involuntary case or other proceeding is commenced against Borrower seeking
liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any substantial part of its
property, and such involuntary case or other proceeding remains undismissed and unstayed for a
period of sixty (60) days; or (vi) an order for relief is entered against Borrower under the
federal bankruptcy laws as now or hereafter in effect.

 

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10. Remedies Upon Event of Default: If an Event of Default shall have occurred and be
continuing, Holder may, by written notice to Borrower, declare all outstanding principal of,
accrued and unpaid interest on, and all other amounts under this Note to be immediately due and
payable and upon such declaration, such amounts shall become immediately due and payable and shall
bear interest at the default interest rate of eighteen percent (18%) from the due date until paid
in full. If an Event of Default specified in clause (iv), (v) or (vi) of Section 9 occurs,
all outstanding principal of, accrued and unpaid interest on, and all other amounts under this Note
shall become immediately due and payable without any declaration or other act on the part of
Holder. In addition to the acceleration provisions set forth above, Holder may suspend or
terminate its obligation to make further advances as provided in Section 2, and exercise
all remedies provided at law or in equity or by statute. Each right, power or remedy of Holder
granted to Holder upon the occurrence of any Event of Default as provided for in this Note or now
or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and
shall be in addition to every other right, power or remedy provided for in this Note or now or
hereafter existing at law or in equity or by statute, and the exercise or beginning of the exercise
by Holder hereof of any one or more of such rights, powers or remedies shall not preclude the
simultaneous or later exercise by Holder of any or all such other rights, powers or remedies. Upon
the occurrence of an Event of Default, Borrower shall pay all costs and expenses (including
attorneys’ fees) that are incurred by Holder in connection with the preservation and enforcement of
its rights under this Note.

11. Waivers. Borrower hereby waives presentment for payment, demand, notice, protest,
notice of protest and notice of dishonor, and all other notices of any kind whatsoever to which it
may be entitled under applicable law or otherwise, except for notices to which Borrower is
expressly entitled under this Note.

12. Loss, Theft, Destruction, or Mutilation of this Note. Upon receipt of evidence
reasonable satisfactory to Borrower of the loss, theft, destruction or mutilation of this Note,
and, in the case any such loss, theft or destruction, upon receipt of an indemnity reasonably
satisfactory to Borrower, or, in the case of any such mutilation, upon surrender and cancellation
of such mutilated Note, Borrower shall issue and deliver within five (5) days a new Note, of like
tenor, in lieu of the lost, stolen, destroyed or mutilated Note.

13. Costs of Collection. Borrower agrees to pay to Holder all costs and expenses,
including the fees and expenses of all attorneys, accountants and other experts retained by Holder,
that are expended or incurred by or on behalf of Holder in connection with (a) the collection and
enforcement of this Note, whether or not any action, suit or other proceeding is commenced; (b) any
actions for declaratory relief in any way related to this Note or the indebtedness evidenced
hereby; (c) the protection or preservation of any rights or remedies of Holder under this Note; (d)
any actions taken by Holder in negotiating any amendment, waiver, consent or release of or under
this Note; (e) any actions taken in reviewing Borrower’s financial affairs if any Default or Event
of Default shall have occurred or Holder shall have determined in good faith that a Default or an
Event of Default may likely occur; (f) any refinancing, restructuring (whether in the nature of a
“work out” or otherwise), bankruptcy or insolvency proceeding involving Borrower; (g) any actions
taken to perfect and protect any lien or security interest granted to Holder upon any default under
the Loan Agreement or this Note; or (h) any effort by Holder to protect, assemble, complete,
collect, sell, liquidate or otherwise dispose of
any property in which Holder is granted a security interest, including in connection with any
case under bankruptcy law.

 

-3-

 

14. Usury Savings Clause. Borrower agrees to pay an effective rate of interest that
is the rate provided for in this Note plus any additional rate of interest resulting from any
charges of interest or in the nature of interest paid or to be paid in connection with the advances
evidenced by this Note and the Loan Agreement, including, without limitation the Loan Fee.
Notwithstanding any provision herein or in any instrument now or hereafter securing this Note, the
total liability for payments of interest and in the nature of interest shall not exceed the limits
imposed by the usury laws of the State of Arizona. If Holder receives as interest an amount that
would exceed such limits, such amount that would be excessive interest shall be applied to the
reduction of the unpaid principal balance and not to the payment of interest, and if a surplus
remains after full payment of principal and lawful interest, the surplus shall be remitted to
Borrower by Holder, and Borrower hereby agrees to accept such remittance.

15. Extension of Time. Holder may, at its sole option, extend the time for payment of
this Note, postpone the enforcement hereof, or grant any other indulgence without affecting or
diminishing Holder’s right to full recourse against Borrower hereunder, which right is expressly
reserved.

16. Outstanding Principal Balance. Borrower hereby authorizes Holder to endorse on
Exhibit “A” attached hereto and incorporated herein by this reference, appropriate
notations evidencing the date and amount of each Advance Amount and principal and interest
repayment by Borrower; provided, however, that failure of Holder to make notation
of any such advance or repayment shall not limit or otherwise affect Borrower’s obligations under
this Note and the recognition by Holder of payments by Borrower of principal and interest under
this Note.

17. Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF ARIZONA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE
(WITHOUT REGARD TO THE CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE
LAWS OF THE UNITED STATES OF AMERICA.

18. Captions; Construction and Interpretation. The captions contained in this Note
are for convenience of reference only, do not constitute a part of this Note and are not to be
considered in construing or interpreting this Note. Neither Borrower nor Holder shall be deemed
the drafter of this Note for purposes of construing the provisions of this Note. All provisions of
this Note shall be construed in accordance with their fair meaning, and not strictly for or against
Borrower or Holder. Whenever used herein, the word “Borrower” shall be deemed to include its
respective successors and assigns.

19. WAIVER OF JURY TRIAL. BORROWER AND HOLDER (BY ACCEPTANCE THEREOF) HEREBY WAIVE
THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING BROUGHT TO RESOLVE ANY CLAIM,
CONTROVERSY OR DISPUTE ARISING UNDER OR RELATING TO THIS NOTE, ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, REGARDLESS OF WHICH
PARTY INITIATES SUCH ACTION, SUIT OR OTHER PROCEEDING.

 

-4-

 

20. Amendment. This Note may not be amended, modified, or changed, nor shall any
waiver of any provision hereof be effective, except only by an instrument in writing and signed by
Borrower and Holder.

21. Time. Time is of the essence of this Note.

22. Successors and Assigns. This Note shall be binding upon the heirs, legatees and
personal representatives of Borrower and shall inure to the benefit of the successors, assigns and
participants of Holder.

23. Notices. Any notice, demand, consent, approval, or other communication required
or desired to be given under this Note (“Notices”) shall be in writing and shall be
directed to the parties at the addresses set forth herein. All Notices provided for or permitted
by this Note shall be in writing and may be delivered by any one of the following methods: (a) by
personal delivery, (b) by United States Postal Service, certified mail, return receipt requested
(c) by prepaid deposit with an overnight express delivery service, or (d) by facsimile transmission
with a confirmed copy of successful transmission, together with a copy sent by one of the other
methods of notice authorized by this Section. All Notices shall be effective upon receipt, which
absent contrary proof, shall conclusively be presumed to occur not later than one (1) business day
after deposit with an overnight express delivery service, three (3) business days following posting
if transmitted by mail, or the date of transmission if sent by facsimile transmission. Each party
shall have the right to designate a different address by the giving of notice in conformity with
this Section. All notices shall be sent to:

	 	 	 	 	 
	 

	 	Holder:
	 	FOC Financial Limited Partnership
	 

	 	 	 	2025 South Airport Boulevard
	 

	 	 	 	Chandler, Arizona 85249 
	 

	 	 	 	Attn: Steven Fisher
	 

	 	 	 	Facsimile: 480.782.9152
	 
	 	 	 	 
	 

	 	Borrower:
	 	ProLink Solutions, LLC.
	 

	 	 	 	480 S. Benson Lane
	 

	 	 	 	Chandler, Arizona 85224 
	 

	 	 	 	Attn: Lawrence Bain

[Signature appears on the following page]

 

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IN WITNESS WHEREOF, Borrower has caused this Note to be executed and delivered by its
authorized representatives as of the date first above written.

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	ProLink Solutions, llc,
	 	 	A Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

-6-

 

Exhibit “A”

Ledger

	 	 	 	 	 	 	 	 	 
	Golf Course or	 	 	 	Advance	 	Repayment	 	Repayment
	Owner	 	Advance Date	 	Amount	 	Date	 	Amount

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