Document:

EX-10.3

 Exhibit 10.3 
 PROMISSORY NOTE (DEMAND) 
  

			
	 $2,000,000.00
	  	July 22, 2013

 1. Principal Amount. For Value Received, Graymark Healthcare, Inc., an Oklahoma corporation,
(“Maker”), promises to pay to the order of Foundation Healthcare Affiliates, LLC (“Payee”), the principal amount of two million dollars ($2,000,000.00), payable at the times specified in paragraph 3 hereof. 

2. Interest. Maker also promises to pay interest on the unpaid principal amount hereof from the date hereof until such unpaid principal amount is
paid in full, at the per annum rate of seven percent, (7%), payable at the times specified in paragraph 3 hereof. 
 3. Payments. The
principal balance shall be paid by Maker to Payee, on demand. Interest on the unpaid balance at the rate set forth above shall be paid monthly, commencing 30 days from the date hereof and continuing on the same day of each month thereafter until
paid in full. All payments shall be payable in U. S. dollars and directed to Payee’s offices at 14000 N. Portland Ave., Suite 203, Oklahoma City, OK 73134, unless Maker is otherwise notified in writing by Payee. 

4. Application of Payments. All payments made by Maker to Payee pursuant to this Note shall be applied first to accrued and unpaid interest and
the balance, if any, to unpaid principal. 
 5. Post-Maturity Interest; Computation of Interest. Any amount of principal and/or interest
hereof which is not paid when due, whether at stated maturity or by acceleration, shall bear interest from the date when due until said principal and/or interest amount is paid in full, at an interest rate of one and one-half per cent
(1.5%) per month; provided however, that in no event shall the interest contracted for, charged, received, paid, or agreed to be paid to the holder hereof, exceed the maximum amount permissible under applicable law. If, from any circumstance
whatsoever, interest would otherwise be payable to the holder hereof in excess of the maximum lawful amount, the interest payable to the holder hereof shall be reduced to the maximum amount permitted under applicable law, and if from any
circumstance the holder hereof shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal hereof and not
to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof, such excess shall be refunded to Maker. Interest shall be computed on the basis of a year of 360 days. 

6. Default. At the option of Payee and upon demand, it shall be considered an event of default (“Event of Default”) if any of the
following occurs and such Event of Default remains uncured ten (10) days following a notice of default given by Payee to Maker: 
  

	 	(i)	Maker shall fail to pay any sum due hereunder within ten (10) days of the date such sum is due and payable (whether at maturity, by acceleration or otherwise);

  

	 	(ii)	Maker voluntarily liquidates; 

  

	 	(iii)	Maker pursuant to or within the meaning of Title 11, U.S. Code or any similar federal or state law for the relief of debtors: (a) commences a voluntary case or
proceeding; (b) consents to the entry of an order for relief against it in an involuntary case or proceeding; (c) consents to the appointment of a custodian of it or for all or substantially all of its property; (d) makes a general
assignment for the benefit of its creditors; or (e) generally is unable to pay its debts as they become due. 

  

	 	(iv)	A court of competent jurisdiction enters an order or decree (that remains unstayed and in effect for 30 days under any bankruptcy law that: (a) is for relief
against Maker in an involuntary case or proceeding; (b) appoints a custodian of Maker or for all or substantially all of its property; or (c) orders the liquidation of Maker. 

 7. Remedies. After the occurrence of an Event of Default, this Note shall, at the option of Payee,
become due and payable forthwith, without demand upon or further notice to the undersigned, and upon occurrence of any Event of Default or nonpayment of any amounts due hereunder, Payee shall have all of the rights and remedies provided under
applicable law and in equity. Failure to exercise this option shall not constitute a waiver of the right to exercise the same at any other time. 
 8. Waiver. Maker hereby: (i) waives presentment, demand, protest and notice of dishonor; and (ii) agrees that its liability hereunder shall not be affected by any neglect or omission of
Payee to exercise any remedies of set-off. Any failure by Payee to exercise any right hereunder shall not be construed as a waiver of the right to exercise the same or any other rights at any other time. 

9. Transfer of Note. Payee may transfer this Note and assign its rights to any transferee and such transferee shall become vested with all the
powers and rights herein and therein given to Payee. Thereafter, Payee shall be forever relieved and fully discharged from any liability or responsibility in connection with this Note. 
 10. Choice of Law; Venue. THIS NOTE, ITS SCHEDULES, RIDERS, ANCILLARY DOCUMENTS AND AMENDMENTS THERETO SHALL BE GOVERNED IN ALL RESPECTS BY THE LAWS OF THE STATE OF OKLAHOMA. IN ORDER TO INDUCE
MAKER TO EXECUTE THIS NOTE, MAKER HEREBY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING DIRECTLY OR INDIRECTLY FROM THIS NOTE SHALL BE LITIGATED ONLY IN COURTS (STATE OR FEDERAL) HAVING SITUS IN THE STATE OF OKLAHOMA AND THE COUNTY OF OKLAHOMA
UNLESS PAYEE, IN ITS SOLE DISCRETION, WAIVES THIS PROVISION. MAKER HEREBY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED BY PAYEE IN ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF
OKLAHOMA. MAKER WAIVES ANY CLAIM THAT ANY ACTION INSTITUTED BY PAYEE HEREUNDER IS IN AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE. TO THE EXTENT PERMITTED BY LAW, MAKER HEREBY WAIVES TRIAL BY JURY AND ANY RIGHT OF SETOFF OR
COUNTERCLAIM IN ANY ACTION BETWEEN PAYEE AND MAKER. 
 11. Expenses of Enforcement. Maker promises to pay all costs and expenses,
including reasonable attorneys’ fees incurred in the collection and enforcement of this Note. 
 12. Counterparts; Facsimile
Execution. The Note may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Note. Delivery of an executed counterpart of this Note by facsimile shall be equally as effective as delivery of a manually executed counterpart. If Maker delivers an executed counterpart of this Note by facsimile,
Maker shall also deliver a manually executed counterpart of the Note, but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Note. 

IN WITNESS WHEREOF, Maker has executed and delivered this Note as of the date and year first above written. 

 

			
	Maker: GRAYMARK HEALTHCARE, INC.
		
	By:	 	/s/ Stanton Nelson
		 	(signature of duly authorized representative)
	Print Name: Stanton Nelson
	Title: Chief Executive OfficerEX-10.5

 Exhibit 10.5 
 PROMISSORY NOTE 
  

			
	 $5,648,290.40
	  	July 22, 2013
		  	Oklahoma City Oklahoma

 FOR VALUE RECEIVED, the undersigned, Graymark Healthcare, Inc., an Oklahoma Corporation (the
“Borrower”), promises to pay to the order of Roy T. Oliver (the payee, its successors and assigns are hereinafter called the “Lender”), at 101 N. Robinson, Ste. 900, Oklahoma City, Oklahoma 73102, or at such other place as may be
designated in writing by the Lender, on July 31, 2013 (the “Maturity Date”) the principal sum of Five Million Six Hundred Forty Eight Thousand, Two Hundred Ninety Dollars and 40/100cents ($5,648,290.40) in lawful money of the
United States, together with interest accruing from the date hereof at the rates hereinafter specified, payable as follows: 

Prior to Default, the unpaid principal balance of this Note will bear interest from the date hereof at the rate of eight percent
(8%) per annum. Interest will be computed on a per diem charge based on a three hundred sixty (360) day year. The entire unpaid principal balance of this Note plus all accrued and unpaid interest thereon will be due and payable on the
Maturity Date. All payments made under this Note shall be applied first to any accrued interest, fees and costs, and then to principal. Payments hereunder may, at the option of the Lender, be recorded on this Note or on the books and records of the
Lender and will be prima facie evidence of said payments and the unpaid balance of this Note. No payment will be applied to this Note until received by the Lender in collected funds. The holder without the prior consent of Maker may assign this Note
and any security therefor.
 Maker may not re-borrow under this Note and this Note is not on a revolver basis. This Note has
been fully advanced. The Maker shall have the right to prepay this Note in whole or in part at any time and from time to time without premium or penalty, but with interest to the date of payment on the amount prepaid. 

In the event Maker defaults in the terms of this Note, fails to pay this Note (principal or interest) when due, or in the event Maker
shall enter into an assignment for the benefit of creditors or admit its inability to pay debts as they become due, or in the event of the commencement of any bankruptcy or like proceeding against or by Maker, or in the event of a default by Maker
under the terms of those certain loan documents as evidenced by the Second Amended and Restated Loan Agreement by and between Maker (and others) and Arvest Bank, dated effective July 22, 2013, and all amendments, waivers and consents pertaining
thereto (the “Arvest Loan Documents”) that is not timely cured (in any such case a “Default”), thereupon, and in any such event and at any time thereafter during the continuance of such event, this Note shall, at the election of
Lender, become due and payable in full, without presentment, demand, protest or any further notice of any kind, anything contained herein to the contrary notwithstanding. In the event of a Default, thereafter the principal balance of this Note then
due and owing shall bear interest at the rate of Fifteen Percent (15%) per annum (the “Default Rate”). 
 In the
event of Default, the Lender will have available all remedies at law or equity, including all rights and remedies under the Uniform Commercial Code. The Lender will be entitled to proceed to selectively and successively enforce the Lender’s
rights without waiver or discharge. The Maker agrees that if, and as often as, this Note is placed in the hands of an attorney for collection or to defend or enforce any of the holder’s rights hereunder, the Maker shall pay to the holder hereof
his reasonable attorney’s fees, together with all court costs and other expenses incurred and paid by such holder.

 The Maker, endorser, surety, guarantor and all other persons who may become liable for all
or any part of this obligation severally waive presentment for payment, protest and notice of nonpayment. Said parties consent to any extension of time (whether one or more) of payment hereof, any renewal (whether one or more) hereof, and any
release of any party liable for payment of this obligation. Any such extension, renewal or release may be made without notice to such party and without discharging said party’s liability hereunder.

The failure of the holder hereof to exercise any of the remedies or options set forth in this Note or in any instrument securing payment
hereof, upon the occurrence of one or more events of default, shall not constitute a waiver of the right to exercise the same or any other remedy at any subsequent time in respect to the same or any other event of default. The acceptance of the
holder hereof of any payment which is less than the total of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing remedies or options at that time or any subsequent time,
or nullify any prior exercise of any such remedy or option, without the express consent of the holder hereof, except as and to the extent otherwise provided by law.
 MAKER AND LENDER DO HEREBY IRREVOCABLY, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THEIR RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, OR UNDER OR IN
CONNECTION WITH THIS NOTE OR ANY DOCUMENT DELIVERED IN CONNECTION HEREWITH. This Note is made under and is to be governed and construed by the internal laws of the State of Oklahoma. All actions with respect to this Note shall be instituted
solely and exclusively in the courts of the State of Oklahoma sitting in Oklahoma County, Oklahoma, or the United States District Court for the Western District of Oklahoma, sitting in Oklahoma City, Oklahoma, as the Lender may elect, and by
execution and delivery of this Note, the Maker irrevocably and unconditionally submits to the exclusive jurisdiction (both subject matter and personal) of each such court and irrevocably and unconditionally waives: (a) any objection the Maker
might now or hereafter have to the venue in any such court; and (b) any claim that any action or proceeding brought in any such court has been brought in an inconvenient forum. 

The Maker and Lender intend and believe that each provision in this Note comports with all applicable local, state and federal laws and
judicial decisions. However, if any provision or provisions, or if any portion of any provision or provisions, in this Note is found by a court of law to be in violation of any applicable local, state or federal ordinance, statute, law,
administrative or judicial decision, or public policy, and if such court should declare such portion, provision or provisions of this Note to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all parties
hereto that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained therein, and that the rights, obligations and interests of Maker and Lender under the remainder of this Note shall continue in full force and effect. 

It is the intention of the Maker and Lender to comply strictly with all applicable usury laws; accordingly, it is agreed that
notwithstanding any provisions to the contrary in this Note or otherwise relating hereto, in no event shall this Note or other documents require the payment or permit the collection of an aggregate amount of interest in excess of the maximum amount
permitted by any laws which may apply to this transaction, including the laws of the State of Oklahoma. 

  
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 The terms of this Note shall be binding upon Maker and its successors and assigns and shall
inure to the benefit of Lender and his heirs, personal representatives and assigns. 
 Notwithstanding any provision of this
Note, all rights and remedies of Lender hereunder shall be fully subordinate to the Arvest Loan Documents. In the event the Arvest Loan Documents prohibit the repayment of this Note on the Maturity Date, then the Maturity Date of this Note shall be
extended day to day with interest at the rate set forth herein until the earlier of such date as the obligations of Maker under the Arvest Loan Documents have been refinanced or the provisions of the Arvest Loan Documents permit such repayment to
Lender. 
 As further consideration for Lender to make the loan evidenced by this Note and which is material to Lender in
agreeing to make such loan, Borrower does hereby irrevocably and unconditionally waive, release and forever discharge the Lender and its affiliates and each of their heirs, successors, assigns and personal representatives, and agrees to indemnify
each of them including attorney fees and costs, of and from any and all actions, causes of action, suits, damages, claims, demands or offsets of any kind or character whatsoever that the Borrower, ever had, now has, shall or may have for, upon or by
reason of any matter, cause, act, omission, or thing arising or accruing at any time from the beginning of the world through the date of this Note. 
 IN WITNESS WHEREOF, the undersigned Maker has executed this instrument effective as of July 22, 2013. 

 

					
	Graymark Healthcare, Inc., an Oklahoma Corporation
			
		 	By	 	/s/ Stanton M. Nelson
		 		 	Stanton M. Nelson, CEO

  
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