Document:

tws_ex105.htm

EXHIBIT 10.5

 

PROMISSORY NOTE

 

$2,500,000 May 6, 2013

Westport, Connecticut

 

For value received, TriStar Wellness Solutions, Inc., a Nevada corporation (the “Company”), promises to pay to DayStar Funding, LP, a Texas limited partnership, or its assigns (the “Holder”) the principal sum of Two Million Five Hundred Thousand Dollars ($2,500,000).  The principal hereof and any unpaid accrued interest thereon shall be due and payable on or before 5:00 p.m., Eastern Standard Time, on November 6, 2013 (the “Maturity Date”) (unless such payment date is accelerated as provided in Section 3 hereof).  Payment of all amounts due hereunder shall be made at the address of the Holder provided for in Section 4 hereof.  Interest shall accrue on the outstanding principal amount beginning on the Maturity Date at the rate of one and one-half percent (1.5%) per month, simple interest, and shall continue on the outstanding principal until paid in full.  The interest due under this Note shall be paid monthly.  Additionally, a loan fee of two percent (2%) of the principal amount shall be due to the Holder on or before the Maturity Date.  Concurrently with the execution of this Note, the Company shall issue Holder the attached Warrants, in the form attached hereto as Exhibit A, on the terms described therein.

 

1. HISTORY OF THE NOTE.  This Note is being delivered to Holder as consideration for the loan by the Holder to the Company on or about May 6, 2013.

 

2. PREPAYMENT.  The Company may, at its option, at any time and from time to time, prepay all or any part of the principal balance of this Note, without penalty or premium, provided that concurrently with each such prepayment the Company shall pay accrued interest on the principal, if any, so prepaid to the date of such prepayment.

 

3. DEFAULT.  The occurrence of any one of the following events shall constitute an Event of Default:

(a)           The non-payment, when due, of any principal or interest pursuant to this Note;

(b)           The material breach of any representation or warranty in this Note.  In the event the Holder becomes aware of a breach of this Section 3(b), then provided such breach is capable of being cured by Company, the Holder shall notify the Company in writing of such breach and the Company shall have five (5) business days after notice to cure such breach;

(c)           The breach of any covenant or undertaking, not otherwise provided for in this Section 3;

(d)           The commencement by the Company of any voluntary proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or the adjudication of the Company as insolvent or bankrupt by a decree of a court of competent jurisdiction; or the petition or application by the Company for, acquiescence in, or consent by the Company to, the appointment of any receiver or trustee for the Company or for all or a substantial part of the property of the Company; or the assignment by the Company for the benefit of creditors; or the written admission of the Company of its inability to pay its debts as they mature; or

 

 

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(e)           The commencement against the Company of any proceeding relating to the Company under any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt, receivership, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, provided, however, that the commencement of such a proceeding shall not constitute an Event of Default unless the Company consents to the same or admits in writing the material allegations of same, or said proceeding shall remain undismissed for 20 days; or the issuance of any order, judgment or decree for the appointment of a receiver or trustee for the Company or for all or a substantial part of the property of the Company, which order, judgment or decree remains undismissed for 20 days; or a warrant of attachment, execution, or similar process shall be issued against any substantial part of the property of the Company.

Upon the occurrence of any Default or Event of Default, the Holder, may, by written notice to the Company, declare all or any portion of the unpaid principal amount due to Holder, together with all accrued interest thereon, immediately due and payable, in which event it shall immediately be and become due and payable, provided that upon the occurrence of an Event of Default as set forth in paragraph (d) or paragraph (e) hereof, all or any portion of the unpaid principal amount due to Holder, together with all accrued interest thereon, shall immediately become due and payable without any such notice.

 

4. NOTICES.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent as follows:

 

	If to the Company: 	 	TriStar Wellness Solutions, Inc. 

10 Saugatuck Ave.

Westport, CT 06880

Attn:  John Linderman, CEO

Facsimile No.:

	 	 	 
	with a copy to:	 	Law Offices of Craig V. Butler 

9900 Research Dr.

Irvine, CA  92618

Attn:  Craig V. Butler, Esq.

Facsimile No.:  (949) 209-2545

	 	 	 
	If to Holder:	 	
_____________________________

_____________________________

_____________________________

Facsimile No.: __________________

                                                            

or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other Party hereto.

 

 

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5. GOVERNING LAW; VENUE.  The terms of this Note shall be construed in accordance with the laws of the State of Connecticut, as applied to contracts entered into by Connecticut residents within the State of Connecticut, and to be performed entirely within the State of Connecticut.  The parties agree that any action brought to enforce the terms of this Note will be brought in the appropriate federal or state court having jurisdiction over Fairfield County, Connecticut.

 

6. ATTORNEY’S FEES.  In the event the Holder hereof shall refer this Note to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting the enforcement of the Holder’s rights, including reasonable attorney’s fees, whether or not suit is instituted.

 

7. CONFORMITY WITH LAW.  It is the intention of the Company and of the Holder to conform strictly to applicable usury and similar laws.  Accordingly, notwithstanding anything to the contrary in this Note, it is agreed that the aggregate of all charges which constitute interest under applicable usury and similar laws that are contracted for, chargeable or receivable under or in respect of this Note, shall under no circumstances exceed the maximum amount of interest permitted by such laws, and any excess, whether occasioned by acceleration or maturity of this Note or otherwise, shall be canceled automatically, and if theretofore paid, shall be either refunded to the Company or credited on the principal amount of this Note.

 

8. MODIFICATION; WAIVER.  No modification or waiver of any provision of this Note or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Holder.

[remainder of page intentionally left blank; signature page to follow]

 

 

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

	  	
“Company”

	  	  
	  	
TriStar Wellness Solutions, Inc.,

	  	
a Nevada corporation

	 	 
	  	_____________________________
	  	
By:           John Linderman

	  	
Its:           Chief Executive Officer

	  	  
	
Acknowledged:

	  
	  	  
	_____________________________	  
	
[Print Name of Holder]

	  

 

 

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EXHIBIT A

Form of Warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

5tws_ex107.htm

EXHIBIT 10.7

 

PROMISSORY NOTE

 

$50,000.00

Dated: May 6, 2013

 

 FOR VALUE RECEIVED, TRISTAR WELLNESS SOLUTIONS, a Nevada corporation (“Borrower”), promises to pay to the order of James Barickman, an individual (“Lender”), at 3 Church Hill Ln. Redding CT 06896, or at such other place or ACH instructions as attached as Lender has herein designated in writing, the principal sum of Fifty Thousand Dollars ($50,000), together with any outstanding interest on the unpaid principal balance at the rate of eighteen percent (18%) per annum, simple interest in lawful money of the United States of America, in accordance with the terms of this Promissory Note (the “Note”). Each month current simple interest of one and one half percent (1.5%) will be paid by Borrower to Lender as provided herein.

Concurrently with the execution of this Note, Borrower shall issue Lender the attached Warrants on the terms described. The entire unpaid principal balance of this Note, together with all accrued and unpaid interest, shall be due and payable in full on the Due Date of November 6, 2013.

Each of the following events shall constitute an Event of Default under this Note:

	
  

	
(a)

	
Borrower fails to pay to Lender any installment of principal or interest when due under this Note;

	
  

	
(b)

	
Borrower becomes insolvent, makes a general assignment for the benefit of its creditors; or a receiver or trustee shall be appointed over Borrower’s assets;

	
  

	
(c)

	
a proceeding of any nature under the Bankruptcy Code, as amended, or any state insolvency statute, is commenced by or against Borrower, which proceeding, if involuntary, is not dismissed within 30 days of its institution;

	
  

	
(d)

	
a writ of attachment or a garnishment is issued or made against any portion of Borrower’s property, assets or income; or

	
  

	
(e)

	
Borrower fails in any material respect to perform any covenant or agreement made by it in the Agreement of even date with this Note, between Borrower and Lender.

Upon the occurrence of an Event of Default, Lender, at its option and without notice to Borrower, may declare the entire unpaid principal balance of this Note to be immediately due and payable.  Neither Lender’s failure promptly to exercise its right to declare the outstanding principal hereunder to be immediately due and payable, nor Lender’s failure to demand strict performance of any other obligation of Borrower or any other person who may be liable hereunder, shall constitute a waiver of any such rights, nor a waiver of such rights in connection with any future default on the part of Borrower or any other person who may be liable hereunder.  During any period this Note is in default and after acceleration or maturity, the outstanding principal amount of this Note shall bear interest at the rate of eleven percent (11%) per annum.

 

  

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In no event whatsoever shall the interest rate and other charges under this Note exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in the final determination, deem applicable to this Note.  If a court determines that Lender has received interest or other charges in excess of the highest rate applicable, Lender shall promptly, in its sole discretion, apply such amounts to the principal amount due on this Note or refund such amount to Borrower and the provisions of the Note will be deemed to be amended to provide for such permissible rate.

Borrower and all endorsees, sureties and guarantors hereof hereby jointly and severally waive presentment for payment, demand, notice of non-payment, notice of protest or protest of this Note and Lender diligence in collection or bringing suit and do hereby consent to any and all extensions of time, renewals, waivers or modifications as may be granted by Lender with respect to payment or any other provisions of this Note, and to the release of any collateral or any part thereof, with or without substitution.

Borrower’s liability under this Note shall be absolute and unconditional, without regard to the liability of any other party.  Borrower agrees to pay all of Lender’s costs incurred in the collection of this Note, including reasonable attorney’s fees.  This Note has been executed in, and shall be governed by and construed in accordance with the laws of, the State of Connecticut.

 

 

	 	 	TriStar Wellness Solutions, Inc. 

By:

John Linderman, Chief Executive Officer

LENDER:

Name: James Barickman

Address: 3 Church Hill Lane Redding, CT 06896

Phone Number: (203) 856 1567

EMAIL: jbarickman@tstarwellness.com

Social Security:203-417-3998

 

  

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