Document:

expromissorynote.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.30

    

    THIS
INSTRUMENT HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON EXEMPTIONS FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND VARIOUS
APPLICABLE STATE SECURITIES LAWS.  THIS NOTE MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR ASSIGNED OR A SECURITY INTEREST CREATED THEREIN, UNLESS
THE PURCHASER, TRANSFEREE, ASSIGNEE, PLEDGEE OR HOLDER OF SUCH SECURITY INTEREST
COMPLIES WITH ALL APPLICABLE STATE AND FEDERAL SECURITIES LAWS (I.E., SUCH
SECURITIES ARE REGISTERED UNDER SUCH LAWS OR AN EXEMPTION FROM REGISTRATION IS
AVAILABLE THEREUNDER) AND UNLESS THE SELLER, TRANSFEROR, ASSIGNOR, PLEDGOR OR
GRANTOR OF SUCH SECURITY INTEREST PROVIDES AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT THE TRANSACTION CONTEMPLATED WOULD NOT BE IN
VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAWS.

     

    COGNIGEN
NETWORKS, INC.

     

    SECURED
SUBORDINATED PROMISSORY NOTE

     

    $150,000                                                                                                                                                               November 5,
2007

                                          Salt Lake City, Utah

     

    FOR VALUE
RECEIVED, Cognigen Networks, Inc., a Colorado corporation (the “Company”), promises to pay to
BayHill Capital, LLC, a Utah limited liability company (“Investor”), or its registered
assigns, in lawful money of the United States of America the principal sum of
One Hundred Fifty Thousand Dollars ($150,000), or such lesser amount as shall
equal the outstanding principal amount hereof, together with interest from the
date of this Note on the unpaid principal balance at a rate equal to ten percent
(10%) per annum, computed on the basis of the actual number of days elapsed and
a year of 365 days.  All unpaid principal, together with any then
unpaid and accrued interest and other amounts payable hereunder, shall be due
and payable as follows: (i) on December 4th, 2007;
(ii) if the unpaid principal, together with any then unpaid and accrued
interest, has not been paid to Investor on or before December 4th, 2007,
Investor, at its option, shall have the right to have the full amount of the
unpaid principal, together with any then unpaid and accrued interest and other
amounts payable hereunder, repaid in shares of the Company’s common stock, based
upon a conversion price equal to $0.03 per share; and (iii) when, upon or after
the occurrence of an Event of Default (as defined below), such amounts are
declared due and payable by Investor or made automatically due and payable in
accordance with the terms hereof.

     

    THE
OBLIGATIONS DUE UNDER THIS NOTE ARE SECURED BY AN AMENDED SECURITY AGREEMENT
(THE “SECURITY
AGREEMENT”) DATED AS OF THE DATE

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    HEREOF
AND EXECUTED BY THE COMPANY FOR THE BENEFIT OF INVESTOR.  ADDITIONAL
RIGHTS OF INVESTOR ARE SET FORTH IN THE SECURITY AGREEMENT.

     

    The
following is a statement of the rights of Investor and the conditions to which
this Note is subject, and to which Investor, by the acceptance of this Note,
agrees:

     

    1. Definitions.  As
used in this Note, the following capitalized terms have the following
meanings:

     

    (a) “Company” includes the
corporation initially executing this Note and any Person which shall succeed to
or assume the obligations of the Company under this Note.

     

    (b) “Event of Default” has the
meaning given in Section 5
hereof.

     

    (c) “Investor” shall mean the
Person specified in the introductory paragraph of this Note or any Person who
shall at the time be the registered holder of this Note.

     

    (d)  “Purchase Agreement” has the
meaning given in the introductory paragraph hereof.

     

    (e) “Obligations” shall mean and
include all loans, advances, debts, liabilities and obligations, howsoever
arising, owed by the Company to Investor pursuant to the terms of this Note or
the Purchase Agreement, including, all interest, fees, charges, expenses,
attorneys’ fees and costs and accountants’ fees and costs chargeable to and
payable by the Company hereunder and thereunder.

     

    (f) “Person” shall mean and include
an individual, a partnership, a corporation (including a business trust), a
joint stock company, a limited liability company, an unincorporated association,
a joint venture or other entity or a governmental authority.

     

    (g) “Securities Act” shall mean the
Securities Act of 1933, as amended.

     

    (h) “Transaction Documents” shall
mean this Note, the Purchase Agreement, and such other documents as may
reasonably be required to carry out the intent of the transactions contemplated
thereunder.

     

    2. Interest.  Accrued
interest on this Note shall be payable at maturity of the principal amount
hereunder.

     

    3. Prepayment.  This
Note may not be prepaid.

     

    4. Events of
Default.  The occurrence of any of the following shall
constitute an “Event of
Default” under this Note and the other Transaction
Documents:

     

    (a) Failure to
Pay.  The Company shall fail to pay (i) when due any
principal or interest payment on the due date hereunder or (ii) any other
payment required under the terms of

    
      
         

      

      
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    this Note
or any other Transaction Document on the date due and such payment shall not
have been made within five (5) days of the Company’s receipt of Investor’s
written notice to the Company of such failure to pay; or

     

    (b) Breaches of
Covenants.  The Company shall fail to observe or perform any
other covenant, obligation, condition or agreement contained in this Note or the
other Transaction Documents and (i) such failure shall continue for 15 days
after the Company receives notice thereof from Investor, or (ii) if such
failure is not curable within such 15-day period, but is reasonably capable of
cure within 30 days, either (A) such failure shall continue for 30 days or
(B) the Company shall not have commenced a cure in a manner reasonably
satisfactory to Investor within the initial 15-day period; or

     

    (c) Representations and
Warranties.  Any representation, warranty, certificate, or
other statement (financial or otherwise) made or furnished by or on behalf of
the Company to Investor in writing in connection with this Note or any of the
other Transaction Documents, or as an inducement to Investor to enter into this
Note and the other Transaction Documents, shall be false, incorrect, incomplete
or misleading in any material respect when made or furnished; or

     

    (d) Voluntary Bankruptcy or Insolvency
Proceedings.  The Company shall (i) apply for or consent
to the appointment of a receiver, trustee, liquidator or custodian of itself or
of all or a substantial part of its property, (ii) be unable, or admit in
writing its inability, to pay its debts generally as they mature,
(iii) make a general assignment for the benefit of its creditors,
(iv) be dissolved or liquidated, (v) commence a voluntary case or
other proceeding seeking liquidation, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or consent to any such relief or to the
appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it, or (vi) take any
action for the purpose of effecting any of the foregoing; or

     

    (e) Involuntary Bankruptcy or Insolvency
Proceedings.  Proceedings for the appointment of a receiver,
trustee, liquidator or custodian of the Company or of all or a substantial part
of the property thereof, or an involuntary case or other proceedings seeking
liquidation, reorganization or other relief with respect to the Company or the
debts thereof under any bankruptcy, insolvency or other similar law now or
hereafter in effect shall be commenced and an order for relief entered or such
proceeding shall not be dismissed or discharged within 30 days of
commencement.

     

    5. Rights of
Investor upon Default.  Upon the occurrence or existence of any
Event of Default (other than an Event of Default described in Section 4(d) or 4(e)) and at any time
thereafter during the continuance of such Event of Default, Investor may, by
written notice to the Company, declare all outstanding Obligations payable by
the Company hereunder to be immediately due and payable without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the other Transaction
Documents to the contrary notwithstanding.  Upon the occurrence or
existence of any Event of Default described in Section 4(d) or 4(e), immediately and without
notice, all outstanding Obligations payable by the Company hereunder shall
automatically become immediately due and payable, without presentment,

    
      
         

      

      
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    demand,
protest or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the other Transaction Documents to the
contrary notwithstanding.  In addition to the foregoing remedies, upon
the occurrence or existence of any Event of Default, Investor may exercise any
other right, power or remedy granted to it by the Transaction Documents or
otherwise permitted to it by law, either by suit in equity or by action at law,
or both.

     

    6. Subordination.  This
Note shall be subject to and subordinate to prior liens of the Company in favor
of Silicon Valley Bank (with respect to obligations arising pursuant to an
Amended and Restated Loan and Security Agreement dated as of April 23, 2007, to
be effective March 26, 2007), VenCore Solutions, Inc., (with respect to
obligations arising pursuant to a Loan and Security Agreement dated October 11,
2006) and the State of Washington (with respect to an Electronic Partial Payment
Agreement dated November 27, 2006).

     

    7. Successors and
Assigns.  Subject to the
restrictions on transfer described in Sections 9 and 10 below, the rights and
obligations of the Company and Investor shall be binding upon and benefit the
successors, assigns, heirs, administrators and transferees of the
parties.

     

    8. Waiver and
Amendment.  Any provision of
this Note may be amended, waived or modified upon the written consent of the
Company and Investor.

     

    9. Transfer of this
Note.  This Note is not
transferrable.

     

    10. Assignment by the
Company.  Neither this Note
nor any of the rights, interests or obligations hereunder may be assigned, by
operation of law or otherwise, in whole or in part, by the Company without the
prior written consent of Investor or by Investor without prior written consent
of the Company.

     

    11. Notices.  All notices,
requests, demands, consents, instructions or other communications required or
permitted hereunder shall be in writing and faxed, mailed or delivered to each
party to the respective addresses or facsimile number of the parties as set
forth below, or at such other address or facsimile number as the recipient of
any notice shall have notified the other in writing.  All such notices
and communications will be deemed effectively given the earlier of (i) when
received, (ii) when delivered personally, (iii) one business day after
being delivered by facsimile (with receipt of appropriate confirmation),
(iv) one business day after being deposited with an overnight courier
service of recognized standing or (v) four days after being deposited in
the U.S. mail, first class with postage prepaid.

    

    Company:

    Cognigen Networks, Inc.

    9800 Mount Pyramid Court, Ste
400

    Englewood, CO 80112

    Attention: Gary L. Cook

    Telephone: 303-256-6915

    Facsimile:
206-339-6512

    
      
         

      

      
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    Investor:

    BayHill Capital, LLC

    1559 N. Technology Way

    Orem, Utah 84097

    Attention: Robert K.
Bench

    Telephone: (801) 437-9679

    Facsimile: (801) 705-9372

    

    with a copy
to:

    Parr Waddoups Brown Gee &
Loveless

    185 South State Street, Suite
1300

    Salt Lake City, UT 84111

    Attention: Brian Lloyd

    Telephone: (801) 532-7840

    Facsimile: (801) 532-7750

    

     

    12. Payment.  Payment shall be
made in lawful tender of the United States.

     

    13. Default Rate;
Usury.  During any period
in which an Event of Default has occurred and is continuing, the Company shall
pay interest on the unpaid principal balance hereof at a rate per annum equal to
the rate otherwise applicable hereunder plus five percentage
points (5%).  In the event any interest is paid on this Note
which is deemed to be in excess of the then legal maximum rate, then that
portion of the interest payment representing an amount in excess of the then
legal maximum rate shall be deemed a payment of principal and applied against
the principal of this Note.

     

    14. Expenses;
Waivers.  If action is
instituted to collect this Note, the Company promises to pay all costs and
expenses, including, without limitation, reasonable attorneys’ fees and costs,
incurred in connection with such action.  The Company hereby waives
notice of default, presentment or demand for payment, protest or notice of
nonpayment or dishonor and all other notices or demands relative to this
instrument.

     

    15. Governing
Law.  This Note and all
actions arising out of or in connection with this Note shall be governed by and
construed in accordance with the laws of the State of Colorado, without regard
to the conflicts of law provisions of the State of Colorado or of any other
state.

     

    The
Company has caused this Note to be issued as of the date first written
above.

     

    COGNIGEN
NETWORKS, INC.

    a
Colorado corporation

     

    By: ___________________________                                                     

     

    Name: _________________________                                                     

     

    Title: __________________________

    
      
         

      

      
        5exunsecuredpromissorynote.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.31

    

    

    THIS
NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

    

    COGNIGEN
NETWORKS, INC.

     

    UNSECURED
PROMISSORY NOTE

     

    $125,000                                                                                                                                                                         December 5,
2007

     

    FOR VALUE
RECEIVED, Cognigen Networks, Inc., a Colorado corporation (the “Company”) promises to pay to
BayHill Capital LC, a Utah company (“BHC”), or its registered
assigns, in lawful money of the United States of America the principal sum of
One Hundred Twenty-five Thousand Dollars $125,000, or such lesser amount as
shall equal the outstanding principal amount hereof, together with interest from
the date of this Unsecured Promissory Note (this “Note”) on the unpaid principal
balance at a rate equal to twelve percent (12%) per annum, at the end of each of
the Company’s fiscal quarters, computed on the basis of the actual number of
days elapsed and a year of 365 days.  All unpaid principal, together
with any then unpaid and accrued interest and other amounts payable hereunder,
shall be due and payable on the earlier of (i) March 31, 2008 (the “Maturity Date”), or
(ii) when, upon or after the occurrence of an Event of Default (as defined
below), such amounts are declared due and payable by BHC or made automatically
due and payable in accordance with the terms hereof.

     

    The
following is a statement of the rights of BHC and the conditions to which this
Note is subject, and to which BHC, by the acceptance of this Note,
agrees:

     

    1. Definitions.  As
used in this Note, the following capitalized terms have the following
meanings:

     

    (a) “Company” includes the
corporation initially executing this Note and any Person which shall succeed to
or assume the obligations of the Company under this Note.

     

    (b) “Event of Default” has the
meaning given in Section 4
hereof.

     

    (c) “BHC” shall mean the Person
specified in the introductory paragraph of this Note or any Person who shall at
the time be the registered holder of this Note.

     

    (d) “Obligations” shall mean and
include all loans, advances, debts, liabilities and obligations, howsoever
arising, owed by the Company to BHC pursuant to the terms of this Note,
including, all interest, fees, charges, expenses, attorneys’ fees and costs and
accountants’ fees and costs chargeable to and payable by the Company hereunder
and thereunder.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) “Person” shall mean and include
an individual, a partnership, a corporation (including a business trust), a
joint stock company, a limited liability company, an unincorporated association,
a joint venture or other entity or a governmental authority.

     

    (f) “Securities Act” shall mean the
Securities Act of 1933, as amended.

     

    (g) “Transaction Documents” shall
mean this Note.

     

    2. Interest.  Interest
shall accrue at a rate of twelve percent (12%) per annum.  Accrued
interest on this Note shall be calculated and payable at the end of each
calendar quarter and when the principal amount hereunder becoms due and
payable.

     

    3. Prepayment.  The
Company may prepay the outstanding principal balance and accrued interest under
the Note any time.

     

    4. Events of
Default.  The occurrence of any of the following shall
constitute an “Event of
Default” under this Note and the other Transaction
Documents:

     

    
      	
              (a)  

            	
              Failure to
      Pay.  The Company shall fail to pay (i) when due any
      principal or interest payment on the due date hereunder or (ii) any
      other payment required under the terms of this Note on the date due and
      such payment shall not have been made within ten days of the Company’s
      receipt of BHC’s written notice to the Company of such failure to pay;
      or

            

    

     

    
      	
              (b)  

            	
              Breaches of
      Covenants.  The Company shall fail to observe or perform
      any other covenant, obligation, condition or agreement contained in this
      Note and (i) such failure shall continue for 15 days after the
      Company receives notice thereof from BHC, or (ii) if such failure is
      not curable within such 15-day period, but is reasonably capable of cure
      within 30 days, either (A) such failure shall continue for 30 days or
      (B) the Company shall not have commenced a cure in a manner
      reasonably satisfactory to BHC within the initial 15-day period;
      or

            

    

     

    
      	
              (c)  

            	
              Voluntary Bankruptcy or
      Insolvency Proceedings.  The Company shall (i) apply
      for or consent to the appointment of a receiver, trustee, liquidator or
      custodian of itself or of all or a substantial part of its property,
      (ii) be unable, or admit in writing its inability, to pay its debts
      generally as they mature, (iii) make a general assignment for the
      benefit of its creditors, (iv) be dissolved or liquidated,
      (v) commence a voluntary case or other proceeding seeking
      liquidation, reorganization or other relief with respect to itself or its
      debts under any bankruptcy, insolvency or other similar law now or
      hereafter in effect or consent to any such relief or to the appointment of
      or taking possession of its property by any official in an involuntary
      case or other proceeding commenced against it, or (vi) take any
      action for the purpose of effecting any of the
  foregoing;

            

    

     

    
      	
              (d)  

            	
              Involuntary Bankruptcy or
      Insolvency Proceedings.  Proceedings for the appointment
      of a receiver, trustee, liquidator or custodian of the Company or of all
      or a substantial part of the property thereof, or an involuntary case or
      other proceedings seeking liquidation, reorganization or other relief with
      respect to the Company or the debts

               

            

    

     

     

    
      
        
        

      

      
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    thereof under any bankruptcy, insolvency or other similar law now
or hereafter in effect shall be commenced and an order for relief entered or
such proceeding shall not be dismissed or discharged within 60 days of
commencement; or

     

    5. Rights of BHC
upon Default.  Upon the occurrence or existence of any Event of
Default (other than an Event of Default described in Sections 4(d)) and at any
time thereafter during the continuance of such Event of Default, BHC may, by
written notice to the Company, declare all outstanding Obligations payable by
the Company hereunder to be immediately due and payable without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived, anything contained herein to the contrary
notwithstanding.  Upon the occurrence or existence of any Event of
Default described in Sections 4(d),
immediately and without notice, all outstanding Obligations payable by the
Company hereunder shall automatically become immediately due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived.

     

    6. Successors and
Assigns.  The rights and
obligations of the Company and BHC shall be binding upon and benefit the
successors, assigns, heirs, administrators and transferees of the
parties.

     

    7. Waiver and
Amendment.  Any provision of
this Note may be amended, waived or modified upon the written consent of (i) the
Company and the BHC.

     

    8. Transfer of this
Note or Securities Issuable on Conversion Hereof.  With respect to
any offer, sale or other disposition of this Note, BHC will give written notice
to the Company prior thereto, describing briefly the manner thereof, together
with a written opinion of BHC’s counsel, or other evidence if reasonably
satisfactory to the Company. Upon receiving such written notice and reasonably
satisfactory opinion, if so requested, or other evidence, the Company, as
promptly as practicable, shall notify BHC that BHC may sell or otherwise dispose
of this Note in accordance with the terms of the notice delivered to the
Company.  If a determination has been made pursuant to this Section 8 that the
opinion of counsel for BHC, or other evidence, is not reasonably satisfactory to
the Company, the Company shall so notify BHC promptly after such determination
has been made

     

    9. Notices.  All notices,
requests, demands, consents, instructions or other communications required or
permitted hereunder shall be in writing and faxed, mailed or delivered to each
party at the respective addresses of the parties as set forth in the Purchase
Agreement, or at such other address or facsimile number as the Company shall
have furnished to BHC in writing.  All such notices and communications
will be deemed effectively given the earlier of (i) when received,
(ii) when delivered personally, (iii) one business day after being
delivered by facsimile (with receipt of appropriate confirmation), (iv) one
business day after being deposited with an overnight courier service of
recognized standing or (v) four days after being deposited in the U.S.
mail, first class with postage prepaid.

     

    10. Payment.  Payment of the
principal amount hereunder shall be made in lawful tender of the United
States.  Payment of accrued interest shall be made in lawful tender of
the United States or in Common Stock, at the discretion of the
Company.  If the Company pays the accrued interest in Common Stock,
the number of shares of Common Stock will be calculated based on a price of
$0.03 per share of Common Stock, and the Company will deliver, or cause to be
delivered, certificates representing the shares of Common Stock within thirty
(30) days of the principal amount hereunder becoming due and
payable.

     

     

    
      
        
        

      

      
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    11. No Rights as
Stockholders.  This Note does
not entitle the BHC to any voting rights or other rights as a stockholder of the
Company.

     

    12. Default Rate;
Usury.  During any period
in which an Event of Default has occurred and is continuing, the Company shall
pay interest on the unpaid principal balance hereof at a rate per annum equal
twenty percent (20%).  In the event any interest is paid on this
Note which is deemed to be in excess of the then legal maximum rate, then that
portion of the interest payment representing an amount in excess of the then
legal maximum rate shall be deemed a payment of principal and applied against
the principal of this Note.

     

    13. Subordinate
Note.  This Note is expressly subordinate to any current or
future indebtedness of the Company (the “Senior Indebtedness”),
including but not limited to: (i) all indebtedness of the Company to banks,
commercial financial lenders, insurance companies or other financial
institutions or lessors regularly engaged in the business of lending money
(including, but not limited to, indebtedness of the Company to SVB Silicon
Valley Bank, Vencore Capital and (ii) any such indebtedness or any debentures,
notes or other evidence of indebtedness issued in exchange for or to refinance
such Senior Indebtedness, or any indebtedness arising from the satisfaction of
such Senior Indebtedness by a guarantor.

     

    14. Waivers.  The Company
hereby waives notice of default, presentment or demand for payment, protest or
notice of nonpayment or dishonor and all other notices or demands relative to
this instrument.

     

    15. Governing
Law.  This Note and all
actions arising out of or in connection with this Note shall be governed by and
construed in accordance with the laws of the State of Utah, without regard to
the conflicts of law provisions of the State of Utah or of any other
state.

     

    The
Company has caused this Unsecured Promissory Note to be issued as of the date
first written above.

     

    COGNIGEN
NETWORKS, INC.,

    a
Colorado corporation

     

    By: _____________________________                                                     

     

    Name: ___________________________                                                     

     

    Title: ____________________________

     

    

    
      
        
          239315v1

        

         

      

      
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