Document:

exv10w1

 

EXHIBIT 10.1

 FOC FINANCIAL L.P. 

2025 S. AIRPORT BLVD.

CHANDLER, ARIZONA 85249

September 18, 2006

ProLink Solutions, LLC

410 S. Benson Lane

Chandler, Arizona 85224

Attn: Lawrence Bain

			
	           Re:	 	$750,000 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 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.

          Lender, in its sole discretion, may make advances (the “Loan”) to Borrower from time to time
in an amount not to exceed Seven Hundred Fifty Thousand Dollars ($750,000) (the “Maximum Amount”)
on the terms and conditions hereinafter set forth. The Loan shall be evidenced by that certain
Revolving Promissory Note of even date herewith in the principal amount of Seven Hundred Fifty
Thousand Dollars ($750,000) (the “Note”). Principal and interest shall be due and payable in
accordance with the terms and conditions of the Note. This Agreement, the Note, and such
additional security documents and any other instrument now or hereafter executed and delivered in
connection with the loan evidenced hereby, as the same may be amended, supplemental 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, Lender may suspend or terminate the obligation
of Lender 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 the sum of 90% of the Base Purchase Price with
respect to a Prolink System, but in no event more than an amount that when added to the then
outstanding principal balance of the Loan would exceed the Maximum Amount

 

 

(the “System Advance Amount”). Lender will endeavor to notify Borrower within two (2) business
days after receipt of information regarding a proposed funding whether it intends to loan the
System Advance Amount with respect to such proposed Funded Prolink System. If Lender elects, in
its sole discretion, to loan the System Advance Amount to Borrower, Lender shall make such advances
within two (2) business days after the conditions precedent in the following paragraph have been
satisfied with respect to such system ( each a “Funded ProLink System”).

          Lender’s obligation to make advances as provided in the Note is subject to the following
conditions precedent: (a) Approval by Lender of the executed Pay for Play or Lease Agreement
between ProLink’s financing source and the Golf Course Customer for the Funded Prolink System; (b)
Confirmation of credit Approval by ProLink’s funding source of the Golf Course Customer; (c)
Receipt of a detailed description and the System Advance Amount of the Funded Prolink System; (d)
Confirmation of shipment of the Funded Prolink System to the Golf Course Customer; and (e) 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, Prolink will provide to Lender a written certification to such effect,
together with such back-up documentation as Lender shall reasonably request.

          In consideration for the Lender making this credit vehicle available to ProLink, ProLink
Holdings Corp., the parent of the Borrower, shall deliver concurrent with the signing of this
agreement, 250,000 warrants for the purchase of its common stock to the Lender priced at the
current market value of the common stock of the company and having a term of 10 years.

In additional consideration for Lender making any advance to ProLink, Prolink agrees to pay to
Lender a loan origination fee (the “Loan Fee”) equal to one-half of one percent (.5%) of the
System 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 System
Advance Amount.

          ProLink shall repay Lender the System Advance Amount with respect to each Funded ProLink
System within three (3) business days after confirmation of good, collected funds by ProLink from
the sale of such Funded Prolink System. If Borrower’s financing source notifies the Borrower that
it does not intend to pay for a Funded Prolink System or the 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, the Borrower shall notify the 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 Prolink Funded System is defective, or otherwise
unsaleable, Borrower shall replace such defective or unsaleable Funded Prolink System with another
Prolink System of equal quality. Prolink shall execute any necessary documents, instrument and
agreements to perfect or preserve the perfection and priority of Lender’s security interest in such
replacement ProLink System. 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 the Lender in the immediately preceding paragraph,
Borrower shall notify the Lender that the Funded ProLink System or replacement ProLink System has
not been remarketed and shipped.

          As security for the payment and performance of all of the Borrower’s obligations under this
Agreement, the Borrower hereby grants to Lender a continuing lien on, and security interest in, all
of ProLink’s right, title, and interest in and to the Funded ProLink Systems and all proceeds and
accounts arising there from, whether now owned or hereafter acquired or existing (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
interests granted herein. Borrower hereby irrevocably authorizes Lender at any time and from time
to time to file in any Uniform commercial Code jurisdiction any initial financing statements and
amendments thereto that (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.
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, AZ 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.

          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:  	/s/ Steven D. Fisher
 	 
	 	 	Name:  	Steven D. Fisher 	 
	 	 	Title:  	General Partner 	 

 

 

	 	 	 	 	 

CONSENTED AND AGREED TO:

BORROWER:

PROLINK SOLUTIONS, LLC., a Delaware limited liability company

	 	 	 	 	 
	By:

	 	/s/ Lawrence D. Bain
 

Name: Lawrence D. Bain
	 	 
	 

	 	Title: President and CEOexv10w2

 

EXHIBIT 10.2

REVOLVING PROMISSORY NOTE

			
	 	 	 
	$750,000.00
	 	September 18, 2006

          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 (“Lender”), or its endorsees, successors
or assigns (including the Lender, the “Holder”), the principal sum of Seven Hundred
Fifty Thousand Dollars ($750,000.00) (the “Maximum Amount”), or so much thereof as may
be advanced from time to time by Lender, 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 Revolving Note (this “Note”).

          1. Loan Agreement. This Note is made and given in connection with that
certain Letter Loan Agreement dated September 18, 2006 between Borrower and Lender (the “Loan
Agreement”), and all of the terms and conditions of the Loan Agreement are incorporated in this
Note by reference as if fully stated herein.

          2. Advances. Upon written request of Borrower to Lender 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 November
18, 2006 (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 sixty (360) days.

          4. Payments of 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 fifth (5th) day of the following month with respect to any month in
which any advances are outstanding.

          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, AZ 85249, or to such other place of payment as the 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 which are due on a day which 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. This Note is secured by a lien on, and security interest in, all
of Borrower’s right, title, and interest in and to the Funded ProLink Systems (as defined in the
Loan Agreement) and all proceeds and accounts arising therefrom, whether now owned or hereafter
acquired, granted pursuant to the Loan Agreement.

          9. Default. An “Event of Default” or a “Default” under this
Note shall exist (i) if the Borrower fails to make any payment of interest when due; (ii) if the
Borrower fails to repay any advance made by Lender, or the Loan Fee, with respect to a Funded
ProLink System within three (3) business days after receipt by Borrower of good, collected funds
for the System Advance Amount (as defined in the Loan Agreement) with respect to such Funded
ProLink System; (iii) upon the occurrence of an Event of Default or a Default under the Loan
Agreement; (iv) if the 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; or (v) if an involuntary case or other
proceeding is commenced against the 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 an order for
relief is entered against the Borrower under the federal bankruptcy laws as now or hereafter in
effect.

          10. Remedies Upon Event of Default: If an Event of Default shall have
occurred and be continuing, Holder may, by written notice to the 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) or (v) 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
the Holder hereof 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 the Holder hereof of any one or more of such rights, powers or remedies shall not preclude the
simultaneous or later exercise by the Holder of any or all such other rights, powers or remedies.
Upon the occurrence of an Event of Default, the Borrower shall pay all costs and expenses
(including attorneys’ fees) that are incurred by the 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 the Holder all costs and
expenses, including the fees and expenses of all attorneys, accountants and other experts retained
by the Holder, which are expended or incurred by or on behalf of the 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 the
Holder under this Note; (d) any actions taken by the 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 the 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 verify, maintain, perfect and protect any
lien granted to the Holder to secure repayment of this Note; or (h) any effort by the Holder to
protect, assemble, complete, collect, sell, liquidate or otherwise dispose of the Property,
including in connection with any case under bankruptcy law. The Borrower hereby consents to the
taking of the foregoing actions by the Holder.

          14. Usury Savings Clause. Borrower agrees to pay an effective rate of
interest which 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 which
would exceed such limits, such amount which 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. The 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 the Holder’s right to full recourse against Borrower hereunder, which
right is expressly reserved.

          16. Outstanding Principal Balance. Borrower hereby authorizes Lender to
endorse on Exhibit “A” attached hereto and incorporated herein by this reference,
appropriate notations evidencing the date and amount of each principal advance by Lender and
principal repayment by Borrower; provided, however, that failure of Lender 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 Lender 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 Lender 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.

          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 Lender.

 

 

          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 Lender.

          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, AZ 85249
	 

	 	 	 	Attn: Steven Fisher
	 

	 	 	 	          Facsimile: 480.782.9152

	 	 	 	 	 
	 

	 	Borrower:
	 	ProLink Solutions, LLC.
	 

	 	 	 	410 S. Benson Lane
	 

	 	 	 	Chandler, AZ 85224
	 

	 	 	 	Attn: Lawrence Bain

          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:  	                      /s/ Steven D. Fisher
 	 
	 	 	Name:  	Steven D. Fisher 	 
	 	 	Title:  	General Partner

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