Document:

exhibit10-28.htm

    Vishay Precision
Group, Inc.c/o Vishay Intertechnology, Inc.
63 Lancaster Avenue
Malvern,
PA 19355
 

     

    June 14,
2010
 

     

    Mr. William
Clancy
63 Lancaster Avenue
Malvern, PA 19355

     

    Dear Bill:

     

         As you know, Vishay Intertechnology, Inc.
(“VSH”) announced its intention to spin-off its
measurements business to Vishay Precision Group, Inc. (“VPG”). You, VSH and VPG have agreed that on the
date that the spin-off becomes effective (the “Effective Date”) you will resign from your employee
positions with VSH and its affiliates other than VPG, that commencing on the
Effective Date you will serve as Chief Financial Officer of VPG, and that until
the Effective Date your employment with VSH will continue in all respects under
the present terms and conditions.

     

         Attached hereto is a term sheet (the
“Term Sheet”) setting forth the initial terms of your
employment with VPG, commencing on the Effective Date. On or as soon as
practicable following the Effective Date, you and VPG will finalize the terms of
your employment. 

     

         This letter, including the Term Sheet attached
hereto, contains the entire agreement and understanding of your employment by
VPG commencing with the Effective Date, and replaces and supersedes all prior
and contemporaneous discussions, agreements and understandings with respect to
your anticipated employment by VPG. Nothing in this letter alters the terms of
your employment with VSH prior to your anticipated resignation. Neither this
letter nor the Term Sheet may be changed or modified, except by an agreement in
writing signed by VPG, VSH and you, before the Effective Date, or by VPG and you
on or after the Effective Date. This letter agreement is governed by the laws of
the State of Delaware, without application of the principles of conflicts of
laws. 

     

    

    
    

         To become bound by this letter agreement and
Term Sheet, please sign and date this letter in the space provided below and
return it to me. This Agreement may be executed in multiple counterparts
(including by facsimile signature), each of which will be deemed to be an
original, but all of which together will constitute but one and the same
instrument.

     

     

    
      	Sincerely,
	 
	 
	VISHAY PRECISION GROUP, INC.
	 
	By: 	 /s/ Ziv
      Shoshani	 
	Name:	 Ziv Shoshani
	Title:	 President & Chief Executive
	 	 Officer

    

     

     

    
      	
              Intending to be
      legally bound:

            
	 
	/s/ William
      Clancy
	William Clancy

    

    Date: June 14,
2010

     

      

    
      	Intending to be legally
  bound:
	 
	Vishay Intertechnology, Inc.
	 	 
	By:	 /s/ Lior E. Yahalomi
	Name:	 Dr. Lior E. Yahalomi
	Title:	 Executive Vice
      President & Chief
	 	 Financial
  Officer

    

    Date: June 14,
2010

     

    -2-

     

    

    
    

    Chief Financial Officer Employment Term
Sheet

     

    June 14, 2010

     

    This term sheet
summarizes the key employment terms Vishay Intertechnology will recommend to the
Vishay Precision Group's Board for William Clancy. The VPG Board of Directors
will determine the actual compensation program for Mr. Clancy.

     

    
      	Employment Provision	 	       	Terms	 
	
              Title 

            	
            	
              Chief Financial
      Officer of VPG.

            
	
              Effective Date 

            	
            	
              Date of spin when
      VPG becomes a publicly-traded company.

            
	
              Base Salary 

            	
            	
              $250,000

            
	
              Annual Incentive
      (Bonus)

            	
            	
              Annual performance
      bonus target of 40% of base salary with a minimum bonus of 0% of base
      salary and maximum bonus of 80% of base salary. Payouts will be based on
      performance goals which will be recommended by Mr. Shoshani and approved
      by the Compensation Committee.

            
	
              Long-Term
    Incentives

            	
            	
              Annual target LTI
      value of 40% of base salary, payable in long-term incentive vehicles in a
      mix of vehicles to be determined by the VPG Board.

            
	
               Founder’s Equity
      Grant

            	
            	
              A Founders equity
      grant with a total value of $100,000 in the form of restricted stock
      units, cliff-vested after three years, will be made on the date of
      spin-off.exhibit10-29.htm

    Vishay Precision
Group, Inc.

     

    c/o Vishay
Intertechnology, Inc.
63 Lancaster Avenue
Malvern, PA
19355
 

     

    June 14,
2010
 

     

    Mr. Tom Kieffer
63
Lancaster Avenue
Malvern, PA 19355

     

    Dear Tom:

     

         As you know, Vishay Intertechnology, Inc.
(“VSH”) announced its intention to spin-off its
measurements business to Vishay Precision Group, Inc. (“VPG”). You, VSH and VPG have agreed that on the
date that the spin-off becomes effective (the “Effective Date”) you will resign from your employee
positions with VSH and its affiliates other than VPG, that commencing on the
Effective Date you will serve as Chief Technology Officer of VPG, and that until
the Effective Date your employment with VSH will continue in all respects under
the present terms and conditions.

     

         Attached hereto is a term sheet (the
“Term Sheet”) setting forth the initial terms of your
employment with VPG, commencing on the Effective Date. On or as soon as
practicable following the Effective Date, you and VPG will finalize the terms of
your employment. 

     

         This letter, including the Term Sheet attached
hereto, contains the entire agreement and understanding of your employment by
VPG commencing with the Effective Date, and replaces and supersedes all prior
and contemporaneous discussions, agreements and understandings with respect to
your anticipated employment by VPG. Nothing in this letter alters the terms of
your employment with VSH prior to your anticipated resignation. Neither this
letter nor the Term Sheet may be changed or modified, except by an agreement in
writing signed by VPG, VSH and you, before the Effective Date, or by VPG and you
on or after the Effective Date. This letter agreement is governed by the laws of
the State of Delaware, without application of the principles of conflicts of
laws. 

     

    

    
    

         To become bound by this letter agreement and
Term Sheet, please sign and date this letter in the space provided below and
return it to me. This Agreement may be executed in multiple counterparts
(including by facsimile signature), each of which will be deemed to be an
original, but all of which together will constitute but one and the same
instrument.

     

     

    
      	Sincerely,
	 
	 
	VISHAY PRECISION GROUP, INC.
	 
	By: 	 /s/ Ziv
      Shoshani	 
	Name:	 Ziv Shoshani
	Title:	 President 

    

     

  

    
      	Intending to be legally
      bound:       
	 
	/s/ Tom Kieffer
	Tom
      Kieffer

    

    Date: June 14,
2010
 

     

    
      	Intending to be legally
  bound:
	 
	Vishay Intertechnology, Inc.
	 	 
	By:	 /s/ Lior E. Yahalomi
	Name:	 Dr. Lior E. Yahalomi
	Title:	 Executive Vice
      President & Chief
	 	 Financial
  Officer

    

     

    Date: June 14,
2010

     

    -2-

     

    

    
    

    Chief Technology Officer Employment Term
Sheet

     

    June 14, 2010

     

    This term sheet
summarizes the key employment terms Vishay Intertechnology will recommend to the
Vishay Precision Group's Board for Tom Kieffer. The VPG Board of Directors will
determine the actual compensation program for Mr. Kieffer.

     

    
      	Employment Provision	 	       	Terms	 
	
              Title 

            	
            	
              Chief Technology
      Officer of VPG.

            
	
              Effective Date 

            	
            	
              Date of spin when
      VPG becomes a publicly-traded company.

            
	
              Base Salary 

            	
            	
              $225,000

            
	
              Annual Incentive
      (Bonus)

            	
            	
              Annual performance
      bonus target of 30% of base salary with a minimum bonus of 0% of base
      salary and maximum bonus of 60% of base salary. Payouts will be based on
      performance goals which will be recommended by Mr. Shoshani and approved
      by the Compensation Committee

            
	
              Long-Term
    Incentives

            	
            	
              Annual target LTI
      value of 30% of base salary, payable in long-term incentive vehicles in a
      mix of vehicles to be determined by the VPG Board.

            
	
               Founder’s Equity
      Grant

            	
            	
              A Founders equity
      grant with a total value of $100,000 in the form of restricted stock
      units, cliff-vested after three years, will be made on the date of
      spin-off.f10k2010ex4ii_greenchek.htm

Exhibit 4.2

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

	Principal Amount: $100,000.00   	Issue Date: August 27, 2009

 

SECURED CONVERTIBLE NOTE

FOR VALUE RECEIVED, Greenchek Technology, Inc., a Nevada corporation (hereinafter called “Borrower”), hereby promises to pay to the Bodie Investment Group, Inc., (the “Holder”), without demand, the sum of one hundred thousand Dollars ($100,000), with simple and unpaid interest thereon, on August 27, 2010 (one year after Closing Date) (the “Maturity Date”), if not paid sooner.

 

This Note has been entered into pursuant to the terms of a subscription agreement between the Borrower and the Holder.  Unless otherwise separately defined herein, all capitalized terms used in this Note shall have the same meaning as is set forth in the Subscription Agreement.  The following terms shall apply to this Note:

 

ARTICLE I

GENERAL PROVISIONS

1.1           Interest Rate.   Simple interest payable on this Note shall accrue at the annual rate of eight percent (8%).  Accrued interest will be payable on the Maturity Date, accelerated or otherwise, when the principal and remaining accrued but unpaid interest shall be due and payable.  Interest will be payable in cash or at the election of the Holder, by the Borrower’s delivery of Common Stock valued at the Conversion Price in effect on the Conversion Date as defined in Section 2.1.

 

1.2           Default Interest Rate.  The Borrower shall not have any grace period to pay any monetary amounts due under this Note.  After the Maturity Date, accelerated or otherwise, and during the pendency of an Event of Default (as defined in Article III) a default interest rate of fifteen percent (15%) per annum shall apply to the amounts owed hereunder.

 

1.3.          Conversion Privileges.  The conversion rights of the Holder as set forth in Article II of this Note shall remain in full force and effect immediately from the date hereof and until the Note is paid in full regardless of the occurrence of an Event of Default.  The principal amount of the Note and the remaining accrued but unpaid interest shall be payable in full on the Maturity Date, unless previously paid or converted into Common Stock in accordance with Article II hereof.

 

  

1

  

ARTICLE II

CONVERSION RIGHTS

The Holder shall have the right to convert the entire principal amount under this Note and the accrued but unpaid interest thereon into shares of the Borrower’s Common Stock as set forth below.

 

2.1.           Voluntary Conversion into the Borrower’s Common Stock.

 

(a)           The Holder shall have the right from and after Sept. 27, 2009 or sooner upon the occurrence of an Event of Default and then at any time until this Note is fully paid, to convert any outstanding and unpaid principal portion of this Note and accrued interest, at the election of the Holder (the date of giving of such notice of conversion being a “Conversion Date”) into fully paid and nonassessable shares of Common Stock as such stock exists on the date of issuance of this Note, or any shares of capital stock of Borrower into which such Common Stock shall hereafter be changed or reclassified, at the conversion price as defined in Section 2.1(b) hereof (the “Conversion Price”), determined as provided herein.  Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is annexed hereto, Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion Date (such third day being the “Delivery Date”) that number of shares of Common Stock for the portion of the Note converted in accordance with the foregoing.  The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing that portion of the principal of the Note (and any interest) to be converted, by the Conversion Price.

 

(b) Subject to adjustment as provided for in Section 2.1(c) hereof, the Conversion Price per share of Common Stock shall be $0.05 for 180 days after the Closing Date (“Conversion Price”).  Commencing 180 days after the Closing Date, the Conversion Price per share of Common Stock shall be equal to the lessor of (i) $0.05, or (ii) seventy-five percent (75%) of the average of the three lowest closing bid prices of the Company’s Common Stock for the twenty trading days preceding a Conversion Date. If the Company files a Registration Statement for the Equity Line with Bodie Investment Group within 30 days from closing of this Note, then the Investor will agree to not convert for ninety days from closing.

 

(c)           The Conversion Price and the number and kind of shares or other securities to be issued upon conversion of this Note, shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

 

A.           Merger, Sale of Assets, etc.  If the Borrower at any time shall consolidate with or merge into or sell or convey all or substantially all its assets to any other corporation, this Note, as to the unpaid principal portion thereof and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase such number and kind of shares or other securities and property as would have been issuable or distributable on account of such consolidation, merger, sale or conveyance, upon or with respect to the securities subject to the conversion or purchase right immediately prior to such consolidation, merger, sale or conveyance.  The foregoing provision shall similarly apply to successive transactions of a similar nature by any such successor or purchaser.  Without limiting the generality of the foregoing, the anti-dilution provisions of this Section shall apply to such securities of such successor or purchaser or surviving entity of the surviving corporation after any such consolidation, merger, sale or conveyance.

 

  

2

  

 

B.           Reclassification, etc.  If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes of the Borrower’s capital stock that may be issued or outstanding, this Note, as to the unpaid principal amount thereof and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the shares of Common Stock subject to the conversion of this Note immediately prior to such reclassification or other change.

 

C.           Stock Splits, Combinations and Dividends.  If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

 

D.           Share Issuance.   So long as this Note is outstanding, if the Borrower shall issue or agree to issue any shares of Common Stock other than with respect to any Excepted Issuances for a consideration less than the Conversion Price in effect at the time of such issue, then, and thereafter successively upon each such issue, the Conversion Price shall be reduced to such other lower issue price.  For purposes of this adjustment, the issuance of any security carrying the right to convert such security into shares of Common Stock or of any warrant, right or option to purchase Common Stock shall result in an adjustment to the Conversion Price upon the issuance of the above-described security and again upon the issuance of shares of Common Stock upon exercise of such conversion or purchase rights if such issuance is at a price lower than the then applicable Conversion Price.

 

(d)           Whenever the Conversion Price is adjusted pursuant to Section 2.1(c) above, the Borrower shall promptly provide notice to the Holder setting forth the Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment.

 

(e)           The Borrower will reserve from its authorized and unissued shares of Common Stock, 10,000,000 shares of Common Stock, for this note (which will be included in the 35,000,000 shares for the equity line). The Borrower represents that upon issuance, such shares of Common Stock will be duly and validly issued, fully paid and non-assessable.  The Borrower agrees that its issuance of this Note shall constitute full authority to its officers, agents, and transfer agents who are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of the Borrower’s Common Stock upon the conversion of this Note.

 

2.2           Optional Redemption of Principal Amount.  Provided an Event of Default or an event which with the passage of time on the giving of notice could become an Event of Default has not occurred, whether or not such Event of Default has been cured, then until February 27, 2010, the Borrower will have the option of prepaying the outstanding Principal Amount of this Note ("Optional Redemption"), in whole or in part, by paying to the Holder a sum of money equal to one hundred percent (100%) of the Principal Amount to be redeemed, together with accrued but unpaid interest thereon and any and all other sums due, accrued or payable to the Holder arising under this Note or any Transaction Document through the Redemption Payment Date as defined below (the "Redemption Amount").  Borrower’s election to exercise its right to prepay must be by notice in writing (“Notice of Redemption”).  The Notice of Redemption shall specify the date for such Optional Redemption (the "Redemption Payment Date"), which date shall be twenty (20) business days after the date of the Notice of Redemption (the "Redemption Period"). A Notice of Redemption shall not be effective with respect to any portion of the Principal Amount for which the Holder has a pending election to convert pursuant to Section 2.1, or in connection with a conversion initiated by Holder during the Redemption Period.   A Redemption Notice may be given not more than two times.  On the Redemption Payment Date, the Redemption Amount, less any portion of the Redemption Amount against which the Holder has previously exercised its rights 

 

  

3

  

 

pursuant to Section 2.1, shall be paid in good funds to the Holder. In the event the Borrower fails to pay the Redemption Amount on the Redemption Payment Date as set forth herein, then (i) at the Holder’s election, such Notice of Redemption will be null and void, (ii) Borrower will not have the right to deliver another Notice of Redemption, and (iii) Borrower’s failure may be deemed by Holder to be a non-curable Event of Default.  A Notice of Redemption may be cancelled at the option of the Holder, if at any time during the Redemption Period an Event of Default, or an event which with the passage of time or giving of notice could become an Event of Default (whether or not such Event of Default has been cured), occurs.

 

2.3           No Fractional Shares.  No fractional shares of Common Stock shall be issued upon conversion of this Note, but an adjustment in cash will be made, in respect of any fraction of a share (which will be valued based on the Conversion Price) which would otherwise be issuable upon the surrender of this Note for conversion and a check in the amount of the value of such fractional share shall be delivered to the Holder.

 

2.4           Method of Conversion.  This Note may be converted by the Holder in whole or in part as described in Section 2.1(a) hereof.  Upon partial conversion of this Note, a new Note containing the same date and provisions of this Note shall, at the request of the Holder, be issued by the Borrower to the Holder for the principal balance of this Note and interest which shall not have been converted or paid.

 

2.5           Maximum Conversion.  The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on a Conversion Date, and (ii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the issued and outstanding shares of Common Stock of the Borrower on such Conversion Date.  For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.  Subject to the foregoing, the Holder shall not be limited to aggregate conversions of only 4.99% and aggregate conversion by the Holder may exceed 4.99%.  The Holder shall have the authority and obligation to determine whether the restriction contained in this Section 2.5 will limit any conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of the amount of the Note which is convertible shall be the responsibility and obligation of the Holder.  The Holder may increase the permitted beneficial ownership amount up to 9.99% upon and effective after 61 days prior written notice to the Borrower.  The Holder may allocate which of the equity of the Borrower deemed beneficially owned by the Holder shall be included in the 4.99% amount described above and which shall be allocated to the excess above 4.99%.

 

ARTICLE III

 

EVENT OF DEFAULT

The occurrence of any of the following events of default (“Event of Default”) shall, at the option of the Holder hereof, make all sums of principal and accrued interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable, upon demand, without presentment or grace period, all of which hereby are expressly waived, except as set forth below:

 

3.1           Failure to Pay Principal or Interest.  The Borrower fails to pay any principal, interest or other sum due under this Note when due.

 

  

4

  

 

3.2           Breach of Covenant.  The Borrower breaches any material covenant or other material term or condition of the Subscription Agreement or this Note in any material respect and such breach, if subject to cure, continues for a period of five (5) business days after written notice to the Borrower from the Holder.

 

3.3           Breach of Representations and Warranties.  Any material representation or warranty of the Borrower made herein, in any Transaction Document, or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith or therewith shall be false or misleading in any material respect as of the date made and as of the Closing Date.

 

3.4           Liquidation.  Any dissolution, liquidation or winding up of Borrower or any substantial portion of its business.

 

3.5           Cessation of Operations.  Any cessation of operations by Borrower or Borrower is otherwise generally unable to pay its debts as such debts become due.

 

3.6           Maintenance of Assets.   The failure by Borrower to maintain any material Intellectual Property Rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

3.7           Merger.   The merger, consolidation or reorganization of Borrower with or into another corporation or person or entity (other than with or into a wholly-owned subsidiary), or the sale of capital stock of Borrower by Borrower or the holders thereof, in any case under circumstances in which the holders of a majority of the voting power of the outstanding capital stock of Borrower immediately prior to such transaction shall own less than a majority in voting power of the outstanding capital stock of Borrower or the surviving or resulting corporation or other entity, as the case may be, immediately following such transaction.

 

3.8           Receiver or Trustee.  The Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed without the consent of the Borrower if such receiver or trustee is not dismissed within thirty (30) days of appointment.

 

3.9           Judgments.  Any money judgment, writ or similar final process shall be entered or filed against the Borrower or any of its property or other assets for more than $10,000.

 

3.10           Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Borrower.

 

3.11           Delisting.   Failure of the Borrower’s Common Stock to be listed for trading or quotation on the OTC BB for any reason.

 

3.12           Non-Payment.   A default by the Borrower under any one or more obligations in an aggregate monetary amount in excess of $5,000 after the due date and any applicable cure period.

 

3.13           Stop Trade.  An SEC or judicial stop trade order or Principal Market trading suspension with respect to the Borrower’s Common Stock that lasts for five (5) or more consecutive trading days.

 

3.14           Failure to Deliver Common Stock or Replacement Note.  The Borrower’s failure to deliver Common Stock to the Holder pursuant to and in the form required by this Note and Sections 7 and 11 of the Subscription Agreement, or, if required, a replacement Convertible Note more than five (5) business days after the required delivery date of such Common Stock or replacement Convertible Note.

 

  

5

  

 

3.15           Reservation Default.   The failure by the Borrower to have reserved for issuance upon conversion of the Note the number of shares of Common Stock as required in the Subscription Agreement.

 

3.16           Cross Default.  A default by the Borrower of a material term, covenant, warranty or undertaking of any other agreement to which the Borrower and Holder are parties, or the occurrence of a material event of default under any such other agreement which is not cured after any required notice and/or cure period.

 

3.17           Reverse Splits.   The Borrower effectuates a reverse split of its Common Stock without twenty days prior written notice to the Holder, and written permission from the Investor.

3.18   Financial Statement Restatement.   The restatement of any financial statements filed by the Borrower for any date or period from two years prior to the Issue Date of this Note, if the result of such restatement would, by comparison to the unrestated financial statements, have constituted a Material Adverse Effect.

3.19           Other Note Default.  The occurrence of any Event of Default under any Other Note.

ARTICLE IV

SECURITY INTEREST

4.             Security Interest/Waiver of Automatic Stay.   This Note is secured by a security interest granted to the Collateral Agent for the benefit of the Holder pursuant to a Security Agreement, as delivered by Borrower to Holder.  The Borrower acknowledges and agrees that should a proceeding under any bankruptcy or insolvency law be commenced by or against the Borrower, or if any of the Collateral (as defined in the Security Agreement) should become the subject of any bankruptcy or insolvency proceeding, then the Holder should be entitled to, among other relief to which the Holder may be entitled under the Transaction Documents and any other agreement to which the Borrower and Holder are parties (collectively, "Loan Documents") and/or applicable law, an order from the court granting immediate relief from the automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder to exercise all of its rights and remedies pursuant to the Loan Documents and/or applicable law. THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE, THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW.  The Borrower hereby consents to any motion for relief from stay that may be filed by the Holder in any bankruptcy or insolvency proceeding initiated by or against the Borrower and, further, agrees not to file any opposition to any motion for relief from stay filed by the Holder.  The Borrower represents, acknowledges and agrees that this provision is a specific and material aspect of the Loan Documents, and that the Holder would not agree to the terms of the Loan Documents if this waiver were not a part of this Note. The Borrower further represents, acknowledges and agrees that this waiver is knowingly, intelligently and voluntarily made, that neither the Holder nor any person acting on behalf of the Holder has made any representations to induce this waiver, that the Borrower has been represented (or has had the opportunity to be represented) in the signing of this Note and the Loan Documents and in the making of this waiver by independent legal counsel selected by the Borrower and that the Borrower has discussed this waiver with counsel.

 

  

6

  

 

ARTICLE V

MISCELLANEOUS

5.1           Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

5.2           Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by a reputable overnight courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), (ii) on the first business day following the date deposited with an overnight courier service with charges prepaid, or (iii) on the third business day following the date of mailing pursuant to subpart (b) above, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be: (i) if to the Borrower to: Greenchek Technology, Inc. 101 California Street Suite 2450 San Francisco, CA 94111, with a copy by telecopier only to: The Law Office of Conrad C. Lysiak, P.S. Attn: Conrad C. Lysiak, telecopier: (509) 747-1770, and (ii) if to the Holder, to the name, address and telecopy number set forth on the front page of this Note, with a copy by telecopier only to Yosef Y. Manela Esq. 323-782-0828

 

5.3           Amendment Provision.  The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

5.4           Assignability.  This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns.  The Borrower may not assign its obligations under this Note.

 

5.5           Cost of Collection.  If default is made in the payment of this Note, Borrower shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys’ fees.

 

5.6           Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of New York.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the civil or state courts of New York or in the federal courts located in the State of New York.  Both parties and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts.  The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule

 

  

7

  

 

of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note.   Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other decision in favor of the Holder.  This Note shall be deemed an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies of Holder, may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought.  For purposes of such rule or statute, any other document or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which may be convenient or necessary to determine Holder’s rights hereunder or Borrower’s obligations to Holder are deemed a part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from this Note.

 

5.7           Maximum Payments.  Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum rate permitted by applicable law.  In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum rate shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

 

5.8           Shareholder Status.  The Holder shall not have rights as a shareholder of the Borrower with respect to unconverted portions of this Note.  However, the Holder will have all the rights of a shareholder of the Borrower with respect to the shares of Common Stock to be received by Holder after delivery by the Holder of a Conversion Notice to the Borrower.

 

5.9           Law Governing this Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the civil or state courts of New York or in the federal courts located in the State of New York.  The parties and the individuals executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the jurisdiction of such courts and waive trial by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

  

8

  

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized officer as of the 27th day of August, 2009.

 

 

	 	 	GREENCHEK TECHNOLOGY, INC.	 
	 	 	 	 	 
	
 

	 	
By: 

	/s/ Lincoln Parke	 
	 	 	 	Name:  Lincoln Parke	 
	 	 	 	Title:    President	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	WITNESS:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

  

9

  

 

EXHIBIT A

 

NOTICE OF CONVERSION

(To be executed by the Registered Holder in order to convert the Note)

The undersigned hereby elects to convert the principal amount of the Convertible Note (the “Note”) issued by Greenchek Technology, Inc. on August ___, 2009 and the accrued but unpaid interest thereon into shares of Common Stock of Greenchek Technology, Inc. (the “Borrower”) according to the conditions set forth in such Note, as of the date written below.

 

 

 

	Date of Conversion:  	 

 

	Conversion Price:	 

 

	Shares To Be Delivered:	 

 

	Signature:	 

 

	Print Name:	 

 

	Address:	 

 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]