Document:

Exhibit
10.5

 

PROMISSORY
NOTE

 

$120,000.00

 

	
  December 30,
  2007

  	
   

  	
  San Mateo, California

  

 

This Promissory Note is entered into pursuant to the Settlement
Agreement dated December 30, 2007.

 

1.                                       Promise to Pay.

 

ETELOS INCORPORATED (“Maker”) promises to pay to the order of DANIEL J.
A. KOLKE (“Promisee”) at San Mateo, California, or at such other place as
Promisee may designate in writing, in lawful money of the United States of
America, the principal sum of One Hundred Twenty Thousand and NO/100 Dollars
($120,000.00), with interest thereon until maturity, whether scheduled or
accelerated, at the rate of 7.50%.

 

2.                                       Payment Obligation

 

Maker shall commence making equal monthly payments of principal and
interest on or before January 1, 2008, in accordance with the attached
Schedule, and the unpaid balance of principal and accrued interest, if any,
shall be due and payable in full on or before May 30, 2009 (the “Maturity
Date”).

 

3.                                     No Pre-Payment Penalty

 

There shall be no penalty for any prepayment, in full or in part, at
any time before the Maturity Date.

 

4.                                         Security

 

There will be no security for this Note for so long as Daniel J. A.
Kolke remains either an employee or member of the Board of Directors of Maker
prior to the Maturity Date.  If, at any
time prior to the Maturity Date, Daniel J. A. Kolke is neither an employee or
member of the Board of Directors of Maker, then Maker will grant to Promisee a
security interest in certain assets of Maker, which security interest shall be
subordinated to any and all bank debt or convertible corporate debt of Maker,
but senior to short-term liabilities of the Maker.

 

5.                                       Events of Default.  The
occurrence of any of the following shall, at Promisee’s option, (1) make
all sums of interest, principal and any other amounts owing immediately due and
payable without notice of default, presentment, or demand for payment, protest,
or notice of nonpayment or dishonor or any other notices or demands; and (2) give
Promisee the right to exercise any other right or remedy provided by contract
or applicable law:

 

(a) 
              Maker shall
fail to make a monthly payment of principal or interest when due under this
Note, without providing notice of non-payment; or to perform any other
obligation under this Note or any contract, instrument, addenda, or document
executed in connection with this Note; or

 

1

 

(b) 
             Any
representation or warranty made in the Settlement Agreement or in any financial
statement, certificate, or other document provided by Maker shall be found by a
court of competent jurisdiction to have been false or misleading; or

 

(c) 
              Maker shall
fail to pay its debts generally as they become due or shall file any petition
or action for relief under any bankruptcy, insolvency, reorganization,
moratorium, creditor composition law, or any other law for the relief of or
relating to debtors; an involuntary petition shall be filed under any
bankruptcy law against Maker, or a custodian, receiver, trustee, assignee for
the benefit of creditors, or other similar official shall be appointed to take
possession, custody, or control of the properties of Maker; or the dissolution
of Maker.

 

Promisee has the right at his sole option to continue to accept
interest and/or principal payments due under the Note after any such default,
and such acceptance shall not constitute a waiver of said default or an
extension of the maturity date unless Promisee agrees otherwise in writing.

 

6.               Choice of Law.   This Note shall be construed
in accordance with, and governed in all respects by, the laws of the State of
California, excluding its conflicts of laws principles.  The Parties agree to submit to the
jurisdiction of the Federal and state courts of California in and for San Mateo
County [CA] and agree to be bound by the decisions of such courts with respect
to the breach or interpretation of this Agreement, or the enforcement of any
and all rights, duties, liabilities, obligations, powers, and other relations
between the Parties arising out of this Agreement.

 

7.               General. This Promissory Note is entered into pursuant and subject to the
terms and conditions of a certain Settlement Agreement between the Parties and
others of even date.  Maker has all
necessary right, power and authority to issue and perform its obligations under
this Note.  This Note is a binding
obligation of Maker and shall be binding upon the Parties and their respective
heirs and permitted successors, and assigns. 
Notices shall be given in accordance with the provisions in the
Settlement Agreement. The failure of any Party to enforce any provision of this
Note in accordance with its terms will not constitute a waiver of future
enforcement of that or any other provision of this Note.  To the fullest extent permitted by applicable
law, Maker, for itself and its agents, legal representatives, successors, and
assigns, expressly waives presentment, demand, protest, notice of dishonor,
notice of nonpayment, notice of maturity, notice of protest, presentment for
the purpose of accelerating maturity, diligence in collection, and the benefit
of any exemption or insolvency laws.

 

	
   

  	
  ETELOS
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jeffrey L. Garon

  
	
   

  	
  Authorized
  Signatory

  

 

2Exhibit 10.6

 

PROMISSORY NOTE

 

$51,827.42

 

	
  December 30,
  2007

  	
   

  	
  San Mateo, California

  

 

This
Promissory Note is entered into pursuant to the Settlement Agreement dated December 30,
2007.

 

1.                                       Promise to Pay.

 

ETELOS
INCORPORATED (“Maker”) promises to pay to the order of DESMOND D. KOLKE (“Promisee”)
at San Mateo, California, or at such other place as Promisee may designate in
writing, in lawful money of the United States of America, the principal sum of
Fifty-one Thousand Eight Hundred Twenty-seven and 42/100 Dollars ($51,827.42),
with interest thereon until maturity, whether scheduled or accelerated, at the
rate of 7.50%.

 

2.                                       Payment Obligation

 

Maker
shall commence making equal monthly payments of principal and interest on or
before January 1, 2008, in accordance with the attached Schedule, and the
unpaid balance of principal and accrued interest, if any, shall be due and
payable in full on or before December 31, 2008 (the “Maturity Date”).

 

3.                                     No Pre-Payment Penalty

 

There
shall be no penalty for any prepayment, in full or in part, at any time before
the Maturity Date.

 

4.                                         Security

 

There
will be no security for this Note for so long as Daniel J. A. Kolke remains
either an employee or member of the Board of Directors of Maker prior to the
Maturity Date.  If, at any time prior to
the Maturity Date, Daniel J. A. Kolke is neither an employee or member of the
Board of Directors of Maker, then Maker will grant to Promisee a security
interest in certain assets of Maker, which security interest shall be
subordinated to any and all bank debt or convertible corporate debt of Maker,
but senior to short-term liabilities of the Maker.

 

5.                                       Events of Default.  The
occurrence of any of the following shall, at Promisee’s option, (1) make
all sums of interest, principal and any other amounts owing immediately due and
payable without notice of default, presentment, or demand for payment, protest,
or notice of nonpayment or dishonor or any other notices or demands; and (2) give
Promisee the right to exercise any other right or remedy provided by contract
or applicable law:

 

(a) 
              Maker shall
fail to make a monthly payment of principal or interest when due under this
Note, without providing notice of non-payment; or to perform any other
obligation under this Note or any contract, instrument, addenda, or document
executed in connection with this Note; or

 

 

(b) 
             Any
representation or warranty made in the Settlement Agreement or in any financial
statement, certificate, or other document provided by Maker shall be found by a
court of competent jurisdiction to have been false or misleading; or

 

(c) 
              Maker shall
fail to pay its debts generally as they become due or shall file any petition
or action for relief under any bankruptcy, insolvency, reorganization,
moratorium, creditor composition law, or any other law for the relief of or
relating to debtors; an involuntary petition shall be filed under any
bankruptcy law against Maker, or a custodian, receiver, trustee, assignee for
the benefit of creditors, or other similar official shall be appointed to take
possession, custody, or control of the properties of Maker; or the dissolution
of Maker.

 

Promisee
has the right at his sole option to continue to accept interest and/or
principal payments due under the Note after any such default, and such
acceptance shall not constitute a waiver of said default or an extension of the
maturity date unless Promisee agrees otherwise in writing.

 

6.               Choice of Law.   This Note shall be construed
in accordance with, and governed in all respects by, the laws of the State of
California, excluding its conflicts of laws principles.  The Parties agree to submit to the
jurisdiction of the Federal and state courts of California in and for San Mateo
County [CA] and agree to be bound by the decisions of such courts with respect
to the breach or interpretation of this Agreement, or the enforcement of any
and all rights, duties, liabilities, obligations, powers, and other relations
between the Parties arising out of this Agreement.

 

7.               General. This Promissory Note is entered into pursuant and subject to the
terms and conditions of a certain Settlement Agreement between the Parties and
others of even date.  Maker has all
necessary right, power and authority to issue and perform its obligations under
this Note.  This Note is a binding
obligation of Maker and shall be binding upon the Parties and their respective
heirs and permitted successors, and assigns. 
Notices shall be given in accordance with the provisions in the
Settlement Agreement. The failure of any Party to enforce any provision of this
Note in accordance with its terms will not constitute a waiver of future
enforcement of that or any other provision of this Note.  To the fullest extent permitted by applicable
law, Maker, for itself and its agents, legal representatives, successors, and
assigns, expressly waives presentment, demand, protest, notice of dishonor,
notice of nonpayment, notice of maturity, notice of protest, presentment for
the purpose of accelerating maturity, diligence in collection, and the benefit
of any exemption or insolvency laws.

 

	
   

  	
  ETELOS
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jeffrey L. Garon

  
	
   

  	
  Authorized
  Signatory

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