Document:

ex_179045.htm

Exhibit 10.87

 

BALLOON PROMISSORY NOTE

 

	
			$3,000,000

				
			March 13, 2020

			
	 	Apex, North Carolina

 

FOR VALUE RECEIVED, REACH CONSTRUCTION GROUP, LLC, a North Carolina limited liability company (“Maker”), will pay to the order of CUI GLOBAL, INC. (hereinafter together with any holder hereof, called “Holder”), at 20050 SW 112th Avenue, Tualatin, OR 97062, or at such other place as the Holder may from time to time designate in writing, the principal sum of Three Million Dollars and 00/100 Dollars ($3,000,000), upon the following terms:

 

1.       Payment Terms. Principal and interest hereunder shall be payable to Holder in lawful money of the United States of America at the address of Holder specified above, or at such other place as Holder may designate in writing. All Principal and interest shall be due and payable sixty (60) days from the date of this promissory note.

 

a.     Interest shall accrue at the rate of six percent (6%) per annum. Interest shall be calculated on a 365-day year based on actual days elapsed and shall be payable on the outstanding principal balance due and owing from time to time.

 

b.     There shall be a ten (10) day grace period for each payment. A five percent (5%) late fee will be added to any payments made outside the grace period.

 

2.        Prepayment. Maker shall be entitled to prepay this Note in whole or in part at any time without penalty or permission.

 

3.      Default. An Event of Default shall be deemed to have occurred hereunder upon the occurrence of any of the following events which is not cured within ten (10) days after written notice is sent by Holder to Maker: (a) the Maker's failure to pay any principal or other amounts hereunder when due and payable; (b) a breach of a representation or warranty by Maker pursuant to the Security Agreement; or (c) the commencement of any bankruptcy, receivership or insolvency proceedings by Maker, or if commenced against Maker and not discharged within 10 days, or if an order for relief is entered against Maker by the appropriate bankruptcy court.

 

If any Event of Default shall occur, all then outstanding principal hereunder, all accrued and unpaid interest hereunder and all other amounts payable under this Note shall be accelerated and shall be immediately due and payable without presentment, further demand, protest or further notice of any kind, all of which are hereby expressly waived by the Maker. Upon the occurrence of any Event of Default, the outstanding principal of this Note shall bear interest at the highest legal rate permissible under the laws of the state of Texas. In no event shall the amount of interest due or payments in the nature of interest payable hereunder exceed the maximum contract rate of interest allowed by applicable Texas law, and in the event any such payment is paid by Holder or received by the Holder, then such excess sum shall be credited as a payment of principal, unless Maker shall notify the Holder, in writing, that the undersigned elects to have such excess sum returned to it forthwith.

 

 

 

 

4.       Security. The obligations of Maker under this promissory note are secured by a Security Agreement and UCC-1 filed by Holder on certain assets of Maker.

 

5.       Miscellaneous.

 

a.     No act of omission or commission of the Holder, including specifically any failure to exercise any right, remedy or recourse, shall be effective, unless set forth in a written document executed by the Holder and then only to the extent specifically recited therein. A waiver or release with reference to one event shall not be construed as continuing, as a bar to, or as a waiver or release of any subsequent right, remedy or recourse as to any subsequent event.

 

b.     The validity, construction, enforcement, and interpretation of this Note shall be governed by the laws of the State of Texas and the United States of America, without regard to principles of conflict of laws.

 

c.     Maker (a) consents to the personal jurisdiction of the state court having jurisdiction in Texas, (b) stipulates that the proper, exclusive, and convenient venue for any legal proceeding arising out of this Note is a court of competent jurisdiction in the State of Texas, and (c) waives any defense, whether asserted by a motion or pleading, that Texas, is an improper or inconvenient venue.

 

d.     In any mediation, arbitration, or legal proceeding arising out of this Note, the losing party shall reimburse the prevailing party, on demand, for all costs incurred by the prevailing party in enforcing, defending, or prosecuting any claim arising out of this Note.

 

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

 

	 	REACH CONSTRUCTION GROUP, LLC,
	 	a North Carolina limited liability company
	 	 	 	 
	 	By:	/s/ Brandon Martin
	 	Print Name:	Brandon Martin
	 	Title:	CEO
	 	Reach Construction Group
	 	Date:	03/13/2020

 

 

2ex_179046.htm

Exhibit 10.88

 

SECURITY AGREEMENT

 

THIS AGREEMENT, made effective this 13th day of March ____, 2020, by and among REACH CONSTRUCTION GROUP, LLC, a North Carolina limited liability company (“Obligor”) and CUI GLOBAL, INC., a Colorado corporation (“Secured Party”).

 

W I T N E S S E T H:

 

WHEREAS, Obligor wishes to grant Secured Party a security interest in all of the accounts existing now and in the future of Obligor, including but not limited to all cash and non-cash proceeds from the collection of accounts and contracts receivables and products of such receivables, all insurance of the foregoing and all proceeds thereof, whether now or hereafter existing, all accessions and additions to and substitutions and replacements of any and all of the foregoing, whether now existing or hereafter arising or attaching (each asset is referred to as “Collateral” and all such assets are sometimes referred to collectively as "Collateral") to secure payment of the obligations evidenced by that certain Promissory Note (the “Note”) attached hereto as Exhibit "A" delivered simultaneously herewith, with any and all extensions, renewals or modifications thereof; and

 

WHEREAS, Secured Party wishes to receive a security interest in the Collateral to secure payment of the Note and performance of other obligations under any other agreements with Secured Party.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree as follows:

 

1.        Recitals. The above recitals and the Exhibits referred to herein are true and correct and are incorporated herein by reference.

 

2.       Security Interest. In order to secure (i) the payment of all principal of and interest on the Note as and when the same become due and payable (whether by lapse of time, acceleration or otherwise), (ii) the payment of all fees and charges payable by the Obligor under the terms of this Agreement and the Note, (iii) the payment of all other indebtedness, obligations and liabilities arising under, and the observance and performance of all covenants and agreements contained in the Note and this Agreement, and (iv) the payment in full of all expenses and charges, legal or otherwise, including reasonable attorneys' fees, suffered or incurred by Secured Party in collecting or enforcing payment due Secured Party as evidenced by the Note, or any or all of the other foregoing indebtedness or in realizing upon, protecting or preserving any collateral security for the Note or such other indebtedness. The Obligor hereby assigns, grants and conveys to Secured Party, a continuing security interest in the Collateral wherever located. If not otherwise defined herein, capitalized terms used herein shall have the meaning as defined in the Uniform Commercial Code as enacted and in effect in the State of Texas.

 

 

 

 

3.        Priority of Security Interest. The security interest hereby assigned, granted and conveyed to Secured Party shall be a first lien priority security interest on the Collateral.

 

4.       Cooperation. Obligor shall, at its expense, execute all documents and do all such other acts as Secured Party may reasonably request in order to perfect Secured Party's security interest hereunder.

 

5.       Representations and Warranties. Obligor represents and warrants that: (i) it is the sole owner of the Collateral and has good and marketable title to the Collateral; (ii) it has full power and authority to execute this Agreement and that this Agreement constitutes the valid and binding obligation of Obligor; and (iii) it shall keep the Collateral free and clear from all liens, encumbrances or security interests of every kind except for the security interests granted hereunder.

 

6.        Events of Default. Any of the following shall constitute an Event of Default: (i) the happening of an Event of Default under the Note; or (ii) a breach of any representation or warranty in this Security Agreement.

 

7.       Remedies. Upon an Event of Default, Secured Party may, declare any outstanding indebtedness under the Note to be immediately due and payable. Secured Party may take immediate possession of the Collateral, and Obligor hereby grants Secured Party a right to take possession of any of the Collateral. Additionally, Secured Party shall have available to it all other rights and remedies in equity, or, at law, including the Uniform Commercial Code as adopted in Texas.

 

8.      Waivers. Obligor expressly: (i) waives notice of default; (ii) consents that the time for all payments under the Note may be extended by Secured Party and further consents that any Collateral or any part thereof may be released by Secured Party without in any way modifying, altering, releasing, effecting or limiting the liability of Obligor.

 

9.       Miscellaneous.

 

a.     This Agreement shall be construed in accordance with the laws of the State of Texas. The parties to this Agreement agree that jurisdiction and venue shall exclusively lie in the State of Texas.

 

b.     This Agreement contains the entire understanding between the parties and no modification hereof shall be valid unless in writing and signed by the parties.

 

c.     This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns.

 

d.     Obligor hereby agrees to pay all costs of Secured Party in enforcing Secured Party's rights hereunder, including without limitation, all attorneys' fees and costs.

 

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e.     This Agreement may be executed in a number of identical counterparts which, taken together, shall constitute collectively one (1) agreement; but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

 

 

IN WITNESS WHEREOF, the parties have hereunto caused this Agreement to be executed as of the day and year first above written.

 

	 	SECURED PARTY:
	 	 	 	 
	 	CUI GLOBAL, INC.,
	 	a Colorado corporation
	 	 	 	 
	 	 	 	 
	 	/s/ William J. Clough
	 	Print Name:	William J. Clough
	 	Title:	Executive Chairman & General Counsel
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	OBLIGOR:
	 	 	 	 
	 	REACH CONSTRUCTION GROUP, LLC,
	 	a North Carolina limited liability company
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Brandon Martin
	 	Print Name:	Brandon Martin
	 	Title:	CEO

 

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EXHIBIT "A"

Promissory Note

 

 

 

 

 

 

 

 

 

 

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