Document:

mhtx_ex102.htm

EXHIBIT 10.2

 

GUARANTY AND SECURITY AGREEMENT

 

Dated as of April 3, 2013

 

In order to induce the lenders listed on the signature page hereto (hereinafter the “Holders” and individually, a “Holder”) to extend credit to Senior Scientific, LLC, a New Mexico limited liability company (hereinafter the “Borrower”), pursuant to the terms of that certain Convertible Note Purchase Agreement, of even date herewith, among the Borrower, the Holders and the undersigned, a copy of which is attached hereto as Exhibit “A”, as the same may be amended, restated, supplemented, or otherwise modified in accordance with the terms thereof (hereinafter, the “Note Purchase Agreement”), and the Convertible Promissory Notes of Borrower issued or to be issued under the terms of the Note Purchase Agreement for the principal amount of up to Two Million Five Hundred Thousand Dollars ($2,500,000), a copy of which is attached hereto as Exhibit “B” (hereinafter the “Notes”), Manhattan Scientifics, Inc., a Delaware limited liability company and sole member of Borrower (hereinafter referred to as the “Guarantor”), being the sole record and beneficial owner of all of the members interests of Borrower (hereinafter, the “Units”), hereby absolutely, independently, and unconditionally guarantees and promises to pay to the Holders, their successors or assigns, on demand in lawful money of the United States of America any and all Indebtedness of Borrower to the Holders as follows:

 

	
1. 

	Defined Terms.

 

The word “Collateral” means, collectively, all of the now-owned and hereafter acquired, created or arising tangible and intangible property of the Guarantor, including, without limitation, all of the Units (including any shares or other securities into which the Units may be convertible or exchangeable), and any proceeds thereof.

 

The word “Indebtedness” means any and all obligations, indebtedness, and liabilities of the Borrower to the Holders arising under or evidenced by the Note Purchase Agreement or the Notes, whether matured or unmatured, now or hereafter existing or created, and becoming due and payable.

 

	
2. 

	
Guaranty.

 

The Guarantor unconditionally guarantees to the Holders the full, prompt, and punctual performance and payment of the Indebtedness when due (whether at stated maturity, by acceleration or otherwise) in accordance with the Note Purchase Agreement and the Notes. This Guaranty is irrevocable, unconditional and absolute, and if for any reason all or any portion of the Indebtedness shall not be paid when due, the Guarantor will immediately pay the Indebtedness to the Holders or such other persons entitled to payment of the Indebtedness, in U.S. dollars, without set-off, counterclaim, taxes or other defense.

 

	
3. 

	
Duration of Guaranty.

 

This Guaranty will take effect when received by the Holders, without the necessity of any acceptance by the Holders, and will continue in full force until such time as all obligations of the Borrower to the Holders under the Note Purchase Agreement and the Notes are finally, indefeasibly and fully paid and satisfied.

 

  

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4. 

	
Subordination of Borrower’s Debts to Guarantor.

 

The Guarantor agrees that the Indebtedness of the Borrower to the Holders shall be prior to any claim that the Guarantor may now have or hereafter acquire against the Borrower, whether or not the Borrower becomes insolvent. The Guarantor hereby expressly subordinates any claim the Guarantor may have against the Borrower, upon any account whatsoever, including any liens and rights of any kind that the Guarantor now has, may hereafter acquire or be deemed to have acquired, to any claim that the Holders may now or hereafter have against the Borrower. In the event of insolvency and consequent liquidation, or otherwise, the assets of the Borrower applicable to the payment of the claims of both the Holders and the Guarantor shall be paid first to the Holders and shall be first applied by the Holders to indefeasibly satisfy all of the Indebtedness of the Borrower to the Holders.

 

	
5. 

	
Security.

 

As security for any and all of the obligations of the Guarantor under this Guaranty, now existing or hereafter arising hereunder with respect to the Indebtedness (collectively, the “Liabilities”), the Guarantor hereby assigns, pledges and transfers to the Holders, and grants to the Holders a first priority lien upon and a security interest in any and all of the Guarantor’s right, title and interest in, to and under the Collateral, in each case regardless of where such Collateral may be located or whether such Collateral is in possession of the Guarantor or any third party. The Holders are hereby irrevocably authorized by the Guarantor to execute and file any initial financing statements (and any amendments or continuation statements with respect thereto) in any applicable jurisdictions where, in the opinion of the Holders, such filing is appropriate to protect and perfect their rights, and to take such other actions as to which the Holders determine it is necessary, desirable, or advisable in order to protect, perfect, or maintain the first priority of the Holder’s security interest in such (or any other) Collateral.

 

The Guarantor will cause the Company in respect of Collateral not represented by certificates to mark their books and records with the numbers and face amounts of all such Collateral not represented by certificates and all rollovers and replacements therefor to reflect the security granted by the Guarantor under this Guaranty. The Guarantor will take any actions necessary to cause the Company to take such action as is required to allow the Holder to maintain a first priority lien over the Collateral. The Guarantor represents and warrants that none of the Collateral is held with a securities intermediary.

 

	
6. 

	Representations and Warranties.

 

The Guarantor hereby represents and warrants to the Holders as follows: (a) it has full power and authority and legal right to pledge the Collateral to the Holders pursuant to this Guaranty, and this Guaranty constitutes a legal, valid and binding obligation of the Guarantor, enforceable in accordance with its terms, (b) the execution, delivery and performance of this Guaranty and the other instruments contemplated herein will not violate any provision of any order or decree of any court or governmental instrumentality or of any mortgage, indenture, contract or other agreement to which the Guarantor is a party or by which the Guarantor and the Collateral may be bound, and will not result in the creation or imposition of any lien, charge or encumbrance on, or security interest in, any of the Guarantor’s properties pursuant to the provisions of such mortgage, indenture, contract or other agreement, (c) it owns and has good and marketable title to all of the Collateral free and clear of any claims, defects, liens, security interests, pledges, title retention agreements, or other encumbrances and (d) this Guaranty is effective to create a valid and continuing lien on the Collateral in favor of the Holders, prior to all other liens, except permitted liens that would be prior to liens in favor of the Holders as a matter of law.

 

  

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7. 

	
Covenants.

 

Until all Indebtedness is fully and indefeasibly paid and discharged, the Guarantor covenants and agrees as follows: (a) the Guarantor shall not transfer, assign or dispose of all or any portion of the Collateral nor amend, discharge or take any other action with respect to the Collateral that would diminish the Guarantor’s or any Holder’s right to fully collect the Collateral, (b) the Guarantor shall not permit or suffer to exist any liens, security interests, or adverse claims encumbering any of the Collateral, (c) the Guarantor will defend the Collateral and the security interest granted herein against all claims and demands of all persons and pay, upon demand, all reasonable costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by the Holders in connection with any such claims or demands and (d) the Guarantor shall comply in all material respects with all applicable federal, state and local laws, rules, regulations and ordinances applicable to it or the Collateral.

 

	
8. 

	
Remedies.

 

The occurrence of any Event of Default under the Notes shall constitute an immediate breach of, and default under, this Guaranty. In addition to any other rights and remedies available to the Holders under this Guaranty, the Note Purchase Agreement or the Notes, the Holders shall have all of the rights and remedies of a secured party under the applicable UCC with respect to all of the Collateral (whether or not such UCC applies to the affected collateral), including the right to require the Guarantor to assemble Collateral, to take possession of, sell and transfer Collateral or any proceeds therefrom (including to any Holder or its nominee) and to enforce collection of any Collateral. All cash proceeds received by the Holders in respect of any sale of, collection from, or other realization upon, all or any part of the Collateral shall be applied by the Holders first to the payment of the reasonable costs of any such sale or enforcement, then to reimburse the Holders for any damages, costs or expenses incurred by the Holders as a result of an Event of Default, and then to payment of all or any part of the Indebtedness. In addition, the Guarantor hereby irrevocably constitutes and appoints, upon the occurrence of an Event of Default under the Notes, each the Holders as its true and lawful attorney-in-fact and proxy, with full irrevocable power of substitution for and in the name of the Guarantor or in such attorney-in-fact’s own name, with respect to the Collateral from time to time in the discretion of such attorney-in-fact, for so long as an Event of Default exists, to exercise for any purpose any and all voting rights and other powers arising from or relating to the Collateral, and to otherwise take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Guaranty, without notice to or consent of the Guarantor. This power of attorney and proxy is a power coupled with an interest and shall be irrevocable, and it shall not terminate by operation of law or the occurrence of any other event (other than the termination of this Guaranty in accordance with the terms hereof). The Guarantor shall be liable for all Indebtedness remaining after crediting any net proceeds received by the Holders following the exercise of any of their rights and remedies hereunder. Nothing herein is intended or shall be construed to give the Guarantor any right of subrogation in or under the Transaction Documents, or any right to participate in any way therein, or in any right, title or interest in the assets of the Holders.

 

	
9. 

	
Miscellaneous.

 

a.   Notices. All notices, requests, instructions, consents, and other communications to be given pursuant to this Guaranty shall be in writing and shall be deemed received (i) on the same day if delivered in person, by same-day courier or by facsimile transmission so long as confirmation of such transmission is received; (ii) on the next day if delivered by over night mail or courier; or (iii) on the date indicated on the return receipt, or if there is no such receipt, on the third calendar day (excluding Saturdays and Sundays), if delivered by certified or registered mail, postage prepaid, to the party for whom intended to the following address:

 

If to a Holder, to the address of such Holder as set forth on the signature page hereto,

 

With a copy (which shall not constitute notice) to:

 

DLA Piper LLP (US)

Attn: Rick Marks, Esq.

500 Eighth Street, NW

Washington, DC 20004

Facsimile: (202) 799-5202

Email: richard.marks@dlapiper.com

 

  

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If to the Company:

 

Manhattan Scientifics, Inc.

Attn.: Emmanuel Tsoupanarias

405 Lexington Avenue

New York, NY 10174

Facsimile:

Email:

 

With a copy (which shall not constitute notice) to:

 

Richardson & Patel LLP

Attn: Nimish Patel, Esq.

1100 Glendon Avenue, Suite 850

Los Angeles, CA 90024

Facsimile: (310) 208-1154

Email: npatel@richardsonpatel.com

 

Any party may, by written notice given to the other in accordance with this Guaranty, change the address, facsimile number or email to which notices to such party are to be sent.

 

b.   Preferences; Fraudulent Conveyances. If the Holders are required to rescind or refund any payment received on account of the obligations of the Guarantor hereunder as a result of a determination that such payment constituted a preference or a fraudulent conveyance under the bankruptcy laws or for any similar reason (a “Rescinded Payment”), then the Guarantor’s liability to the Holders and the security interest granted under this Guaranty shall continue in full force and effect, or the Guarantor’s liability to the Holders shall be reinstated, as the case may be, as if the Rescinded Payment had not been made.

 

c.   Complete Agreement; Amendments. This Guaranty is intended by the parties to be an integrated and final expression of this Guaranty and also is intended to be a complete and exclusive statement of the terms of this Guaranty. This Guaranty is a Transaction Document executed pursuant to the Note Purchase Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof. This Guaranty and the other Transaction Documents constitute the entire understanding among the parties hereto with respect to the subject matter hereof, and supersede any prior agreements, written or oral, with respect thereto. No course of prior dealing between the parties, no usage of trade, and no parole or extrinsic evidence of any nature shall be used to supplement, modify or vary any of the terms hereof. There are no conditions to the full effectiveness of this Guaranty. No provisions of this Guaranty or rights of the Holders under this Guaranty can be amended, modified or waived, nor can the Guarantor be released from its obligations under this Guaranty, except by a writing duly executed by the Holders.

 

d.   Further Assurances. The Guarantor will, upon reasonable request, execute and deliver such further assignments, endorsements, agreements, and documents, and take such other action as may be necessary in order to fully to effect the purposes of this Guaranty.

 

e.   Successors and Assigns. This Guaranty shall be binding upon, enforceable against, and inure to the benefit of, the parties hereto and their respective heirs, administrators, executors, personal representatives, successors, endorsees, transferees and assigns, and nothing herein is intended to confer any right, remedy or benefit upon any other person. The Guarantor may not assign its obligations hereunder except with the prior written consent of the Holders.

 

  

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f.   Severability. If any part of this Guaranty is contrary to, prohibited by, or deemed invalid under applicable laws or regulations, such provision shall be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given effect so far as possible.

 

g.   Counterparts. This Guaranty may be executed in counterparts and each counterpart shall have the same force and effect as an original and constitute an effective, binding agreement on the part of each of the undersigned. This Guaranty may be transmitted by facsimile or otherwise.

 

h.   Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits, and schedules.

 

i.   No Assignment of Duties. This Guaranty constitutes an assignment of certain rights of the Guarantor with respect to the Collateral. It does not constitute a delegation of any duties or obligations of the Guarantor with respect to the Collateral. The Holders do not undertake to perform or discharge, and shall not be responsible or liable for the performance or discharge of, any such responsibilities of the Guarantor.

 

j.   Governing Law. This Guaranty shall be governed by and construed and enforced in accordance with the internal laws of the State of [New Mexico] without regard to the principals of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and Federal courts sitting in the State of [New Mexico] for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court or that such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

 

 

[Signature Page Follows.]

  

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IN WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the date first written above.

 

	 	
GUARANTOR

 

MANHATTAN SCIENTIFICS, INC., a Delaware corporation

	 
	 	 	 	 
	 	
By: 

	/s/ Emmanuel Tsoupanarias	 
	 	Name:	Emmanuel Tsoupanarias	 
	 	Title:	Chief Executive Officer	 

Agreed and Acknowledged:

BORROWER

SENIOR SCIENTIFIC, LLC, a New Mexico limited liability company

 

	
By: 

	/s/ V. Gerald Graffe	 
	Name:	V. Gerald Graffe	 
	Title: 	
Manager

	 

Signature Page to Guaranty and Security Agreement

  

6

  

 

HOLDERS

 

	
By: 

	/s/ RAYMOND A. MASON	 
	Name:	RAYMOND A. MASON	 
	Address: 	
880 Spyglass Lane

	 
	 	Naples, Florida 34102	 

	
By: 

	/s/ WILLIAM B. JONES	 
	Name: 	WILLIAM B. JONES	 
	Address: 	
793 17 Ave S,

	 
	 	Naples, Florida 34102	 

 

	
By: 

	/s/ Ferdinand J. Crovato	 
	Name: 	
Ferdinand J. Crovato, Trustee (print name)

	 
	 	
TRUSTEE, FERDINAND J. CROVATO TRUST

	 
	Address:	1201 Stuart Robeson Drive	 
	 	McLean, Virginia 22101	 

Signature Page to Guaranty and Security Agreement (continued)

 

7CONVERTIBLE LOAN AGREEMENT

EXHIBIT 10.1

CONVERTIBLE LOAN AGREEMENT

         This Agreement is dated as of April 3, 2013 by and between Mister Goody, Inc. (“Mister Goody”), a Florida Company located at 7877 Emerald Winds Circle, Boynton Beach, Florida 33473 ( Borrower ) and Snack Um, LLC, a Florida limited liability company located at 2161 Palm Beach Lakes Boulevard, # 304, West Palm Beach, FL 33409 ( Lender ) 

         Whereas Mister Goody is a company involved in providing management consulting services to The Naked Edge, LLC, a partially owned subsidiary;

        Whereas Mister Goody requires funding for general working capital and to increase its investment in The Naked Edge, LLC;

         Whereas Mister Goody wishes to borrow from Snack Um LLC, and Snack Um LLC wishes to lend to Mister Goody, a total amount of US$ 250,000 (Two Hundred Fifty Thousand US Dollars) in the form of a convertible loan.

         Parties agree as follows:

1.       TOTAL AMOUNT OF LOAN

        1.1.     The total amount of the loan is US$ 250,000 (Two Hundred Fifty Thousand US Dollars)

        1.2.     Snack Um LLC is under no further obligation to advance any additional funds to Mister Goody 

2.       TERM OF THE LOAN

          2.1    The Term of the Loan shall be 3 years from the date of receipt of the funds.

3.       DELIVERY OF FUNDS BY SNACK UM LLC

         3.1.   Snack Um LLC will provide for a transfer to the bank account of Mister Goody, Inc. the amount of US$ 250,000 on or before April 3, 2013. Mister Goody will acknowledge receipt of that amount and acknowledge owing US$ 250,000 to Snack Um LLC, with reference to the present Agreement and by way of a Promissory Note (see Appendix A).

4.     INTEREST 

        4.1.     The loan shall bear a rate of interest of 8% (Eight Percent) Per Annum

  

        4.2.    The interest on the loan shall be paid on a quarterly basis by check made payable to Snack Um LLC at the address stated above.        

5.       CONVERSION

         5.1.     Conversion at the Option of Snack Um LLC

              

                  At the sole option of Snack Um LLC, all or part of the unpaid principal then outstanding may be converted into shares of common stock of Mister Goody, at any time starting from the day after payment according to Section 3.1 until Due Date, provided that  Snack Um LLC gives a thirty day notice in writing.

         5.2.     CONVERSION PRICE

                   Snack Um LLC may convert the principal balance outstanding into shares of common stock at a price of $0.10 per share of Mister Goody. Snack Um LLC may convert the entire principal outstanding at any time. Snack Um LLC may convert part of the principal outstanding in increments of $50,000 or more at any time.

6.      REPAYMENT

         6.1.     Should Snack Um LLC elect to not convert the principal into common shares of Mister Goody then Mister Goody will repay the principal amount outstanding and any outstanding interest on the 3rd year anniversary of receiving the loan.

         6.2.     Snack Um LLC may elect to demand repayment with four months of written notice. Notwithstanding the foregoing, Mister Goody shall not be obligated to repay any part of the principal amount outstanding before the 2nd year anniversary of receiving the loan.

         6.3     Mister Goody may repay any part of the outstanding principal at any time with no prepayment penalty. However, Mister Goody shall provide Snack Um LLC with 14 days written notice prior to repayment, during which time Snack Um LLC may elect to convert into common shares the outstanding principal due.

7.      REPRESENTATIONS AND WARRANTIES OF MISTER GOODY

The Company hereby represents and warrants to Purchaser that:

         7.1.     Organization; Qualification.

The Company is a Florida company duly organized, validly existing and in good standing under the laws of Florida and has the actual authority to enter into and execute this Agreement.  

         7.2.     Company Assets and Liabilities.

The company’s quarterly financial statements as filed with the Securities and Exchange Commission are materially complete and accurate.  The Company holds clear, good and marketable title to all of its assets.

         7.3.     No Conflicts. 

Neither the execution and delivery of this Agreement nor the consummation by the Company of the transactions contemplated hereby will result in a violation of, or a default under, or conflict with, or require any consent, approval or notice under, any governing or constitutional document, contract, trust, commitment, agreement, obligation, understanding, arrangement or restriction of any kind to which the Company is a party or by which the Company is bound. 

         7.4.     Compliance with Laws. 

To the best of the Company’s knowledge, the Company is in material compliance in all respects with all applicable laws, rules, regulations, orders, licenses or judgments. Furthermore, the Company’s entry into and performance of this Agreement and the transactions contemplated hereby do not and will not conflict (i) with any law or regulation or any official or judicial order or treaty in the United States, or (ii) with any agreement, contract or other arrangement or document to which the Company is a party to or which is binding upon the Company or any of its assets, nor will the Company’s entering into this Agreement result in the creation or imposition of any Encumbrance on any of the Company’s assets pursuant to the provisions of any such agreement, contract or other arrangement or document.

8.

REPRESENTATIONS AND WARRANTIES OF LENDER

 Snack Um LLC hereby represents and warrants to the Company as follows:

         8.1     No Conflicts.

Neither the execution and delivery of this Agreement nor the consummation by Snack Um LLC of the transactions contemplated hereby will result in a violation of, or a default under, or conflict with, or require any consent, approval or notice under, any governing or constitutional document, contract, trust, commitment, agreement, obligation, understanding, arrangement or restriction of any kind to which Lender is a party or by which Snack Um LLC  is bound.  

         8.2     Investment Purposes.

Snack Um LLC has such knowledge, experience, and sophistication in investment, financial, and business matters that it is capable of evaluating the merits and risks of its investment. Snack Um LLC is able to bear the economic risk of its investment in the Company under this Agreement, can afford a complete loss of such investment and understands that no market for the convertible note now exists and that such market may not hereafter develop.

 

9.       Liability of members and managers of Snack Um LLC

None of the managers of members of Snack Um LLC shall have any personal liability with respect to this transaction or the operation of the business of Mister Goody.

10.       Attorney's Fees

         Notwithstanding anything to the contrary herein, if the principal is not paid in full when due, Mister Goody hereby agrees to pay to Snack Um LLC, in addition to such amount owed to pursuant to the loan, all costs and  expenses  of collection, including a reasonable sum for  attorney’s fees.

11.      Governing Law

         This Agreement shall be governed by and construed in accordance with the laws of the state of Florida, United States:

12.      Arbitration:

In the event a dispute shall arise between the parties to this contract, it is hereby agreed that the dispute shall be referred to for arbitration in accordance with the American Arbitration Association Rules of Mediation and Arbitration

13.      Further Assurance:

The Company and Snack Um LLC shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

14.      Accredited Investor Status:

Snack Um LLC represents that Snack Um LLC: 

[ x ] IS an “accredited investor” as such term is defined in Rule 501 of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and that the Subscriber is able to bear the economic risk of an investment in the Notes, or

[    ] is NOT an “accredited investor” as such term is defined in Rule 501 of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and that the Subscriber is able to bear the economic risk of an investment in the Notes. 

An "accredited investor" is: 

·

a bank, insurance company, registered investment company, business development company, or small business investment company; 

·

an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; 

·

a charitable organization, corporation or partnership with assets exceeding $5 million; 

·

a director, executive officer, or general partner of the company selling the securities; 

·

a business in which all the equity owners are accredited investors; 

·

Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000. For purposes of calculating net worth: (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability. 

·

a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or 

·

a trust with assets of at least $5 million, not formed to acquire the securities offered, and whose purchases are directed by a sophisticated person. 

/s/ Michael Tannenbaum

/s/ Joel Arberman

________________________                                           __________________

Snack Um LLC

Mister Goody Inc

Michael Tannenbaum

Joel Arberman

Managing Member

Managing Member

Appendix A to Convertible Loan Agreement

 Promissory Note 

(Installment Payments)

Borrower:   Mister Goody, Inc. (“Mister Goody”), a Florida Company 

7877 Emerald Winds Circle, Boynton Beach, 

Florida 33473 

(“Borrower”)

Lender:

Snack Um LLC, A Florida Limited Liability Company

2161 Palm Beach Lakes Boulevard, Suite 304 

West Palm Beach FL 33409

(“Lender”)

I.

Promise to Pay

Borrower agrees to pay Lender the total amount of $250,000 (US Dollars Two Hundred Fifty Thousand), together with interest payable on the unpaid principal at the rate of 8% per annum.  

Payment will be delivered to Lender to above address or other address mutually agreed upon both parties.

II.

Repayment / Interest

The amounts owed under this Promissory Note will be repaid in equal installments of $5,000 made every Quarter.  The first payment will be due on June 30, 2013.  All payments shall be first applied to interest and the balance to principal.

Page 1

Unsecured Promissory Note 

(Installment Payments)

III.

CONVERSION

              

At the sole option of Lender, all or part of the unpaid principal then outstanding may be converted into shares of common stock of Borrower, at any time provided that  Lender gives a thirty day notice in writing. Lender may convert part of the principal outstanding in increments of $50,000 or more at any time.

Lender may convert the principal balance outstanding into shares of common stock at a price of $0.10 per share of Borrower. 

IV.

Late Payment Fees

If Borrower defaults in payment by more than 15 days of the time set forth herein, then Borrower shall pay an additional late fee in the amount of 1% per month. 

V.

Additional Costs

In case of default in the payment of any principal or interest of this Promissory Note, Borrower will pay to Lender such further amount as will be sufficient to cover the cost and expenses of collection, including, without limitation, reasonable attorney's fees, expenses, and disbursements.  These costs will be added to the outstanding principal and will become immediately due.  

VI.

Transfer of the Promissory Note

Borrower hereby waives any notice of the transfer of this Note by Lender or by any subsequent holder of this Note, agrees to remain bound by the terms of this Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of this Note.

VII.

Amendment; Modification; Waiver

No amendment, modification or waiver of any provision of this Promissory Note or consent to departure therefrom shall be effective unless by written agreement signed by both Borrower and Lender. 

Page 2

Unsecured Promissory Note 

(Installment Payments)

VIII.

Successors

The terms and conditions of this Promissory Note shall inure to the benefit of and be binding jointly and severally upon the successors, assigns, heirs, survivors and personal representatives of Borrower and shall inure to the benefit of any holder, its legal representatives, successors and assigns.

IX.

Breach of Promissory Note

No breach of any provision of this Promissory Note shall be deemed waived unless it is waived in writing.  No course of dealing and no delay on the part of Lender in exercising any right will operate as a waiver thereof or otherwise prejudice Lender's rights, powers, or remedies.  No right, power, or remedy conferred by this Promissory Note upon Lender will be exclusive of any other rights, power, or remedy referred to in this Note, or now or hereafter available at law, in equity, by statute, or otherwise.  

X.

Governing Law

The validity, construction and performance of this Promissory Note will be governed by the laws of State of Florida, excluding that body of law pertaining to conflicts of law.  Borrower hereby waives presentment, notice of non-payment, notice of dishonor, protest, demand and diligence.

The parties hereby indicate by their signatures below that they have read and agree with the terms and conditions of this agreement in its entirety.

Borrower Signature:

/s/ Joel Arberman

Mister Goody Inc

Lender Signature: 

/s/ Michael Tannenbaum

Snack Um LLC

Date: 4/3/2013

Page 3

Unsecured Promissory Note 

(Installment Payments)

Certificate of Acknowledgment of Notary Public

State of _______________________________

)

)

ss

County of _____________________________

)

On _____________________, before me, ______________________________, a notary public in and for said state, personally appeared ___________________ ________________________, known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he or she executed the same in his or her authorized capacity and that by his or her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

_____________________________________

Notary Public for the State of ______________

My commission expires __________________

[NOTARY SEAL]

Page 4

Unsecured Promissory Note 

(Installment Payments)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]