Document:

Exhibit 10.2

 

PROMISSORY NOTE

 

	
  $2,000,000.00

  	
  November 22, 2005

  
	
   

  	
                    ,
  Nevada

  

 

FOR VALUE RECEIVED, the undersigned, Site Equities International, Inc., a Nevada
corporation (the “Maker”) hereby promises to pay to the order of STEN
Acquisition Corporation, a Minnesota corporation (the “Payee”) at 10275 Wayzata
Boulevard, Suite 301, Minnetonka, Minnesota 55305, or at such other place
designated at any time by the Payee, in lawful money of the United States of
America and in immediately available funds, the principal amount of Two Million
Dollars ($2,000,000.00), or the aggregate unpaid principal amount of the Loan
(as defined in that certain Loan and Merger Option Agreement (the “Loan
Agreement”) dated as of the same date hereof between Maker, Paycenters, LLC, a
Nevada limited liability company (“Paycenters”), and Payee) disbursed to the
Maker pursuant to the Loan Agreement and recorded on Schedule A attached
hereto, whichever is less, together with interest thereon as set forth
below.  For purposes of this Promissory
Note (the “Note”), the Payee together with any permitted assignee thereof who
duly assumes the duties and rights of the Payee shall be referred to as the “Holder.”
Terms not otherwise defined herein shall be assigned the meaning assigned to
them in the Loan Agreement.

 

1.                                       Interest.  The unpaid principal and balance of this Note
shall bear interest at a rate of eight percent (8%) per annum, from and after
the date of this Note.  Interest shall be
computed hereunder for the actual number of days principal is unpaid, using a
daily factor obtained by dividing the stated interest rate by three hundred
sixty (360).

 

2.                                       Payment and Maturity.  Interest and principal under this Note shall
be paid as follows:

 

(a)                                  Except as otherwise set forth in Sections 2(b), Section 2(c) and
2(d), the Maker shall pay interest only beginning on December 15, 2006
(the “Initial Interest Payment Date”) and continuing on June 15 and December 15
of each year thereafter until December 15, 2010, at which time the outstanding
principal and accrued and unpaid interest under the this Note shall become due
and payable.

 

(b)                                 In the event that Holder delivers to Maker an
Intent to Exercise Notice (defined in Section 3.02 of the Loan Agreement),
Maker will not be required to make any payment of interest (although such
interest will continue to accrue) to Holder under Section 2(a) between
the date Holder delivers the Intent to Exercise Notice and the earliest to
occur of the following dates (the “Interest Deferral Termination Date”): (i) the
date the Merger (defined in Section 3.01 of the Loan Agreement) becomes
effective (the “Merger Effective Date”), (ii) the date that the Holder
notifies Maker in writing that it will not deliver a Confirmation Notice
(defined in Section 3.02 of the Loan Agreement),

 

1

 

(iii) the date
that Holder rescinds its Confirmation Notice in accordance with Section 3.05
of the Loan Agreement, or (d) the Merger Option Expiration Date (defined
in Section 3.02 of the Loan Agreement). 
On and after the Interest Default Termination Date, payments of interest
and principal under the Loan shall be made as provided in Sections 2(c) and
Sections 2(d), as applicable.

 

(c)                                  In the event that the Merger becomes effective,
this Note shall be cancelled and all outstanding principal and interest owed
under the Loan and the this Note shall be deemed to have been paid in full as
of the Merger Effective Date.

 

(d)                                 In the event that Holder has delivered to Maker
an Intent to Exercise Notice and an Interest Deferral Termination Date occurs
(other than the Merger Effective Date): the Maker shall, within five (5) Business
Days after the Interest Deferral Termination Date execute and deliver to Holder
a promissory note (the “Replacement Note”) in the form of Exhibit A-2 to
the Loan Agreement, dated as of the Interest Deferral Termination Date and
having a principal amount equal to the amount of principal and accrued and
unpaid interest under the Loan as of the Interest Deferral Termination
Date.  Upon acceptance by Holder of an
executed Replacement Note, in form and substance acceptable to Holder, Holder
shall return to Maker the original of this Note.

 

(e)                                  All payments shall be made in lawful money of the United States of
America and by wire transfer to an account designated by Holder to Maker in
writing.  In the event a payment date is
not a business day, such payment shall be made on the next succeeding business
day, and the extension of time shall in such case be included in the computation
of the payment of interest.

 

3.                                       Security.  The Maker’s obligations under this Note are
secured by that certain security agreement of even date herewith executed by
Paycenters, in favor of the Holder, a certain guaranty of even date herewith
executed by Paycenters, and a certain pledge agreement of even date herewith
executed by Maker in favor of the Holder.

 

4.                                       No Prepayment.  The Maker may not prepay the principal of
this Note or interest accrued thereon without the prior written consent of the
Holder.

 

5.                                       Event of Default.  The occurrence of any Event of Default under
the Loan Agreement shall constitute an “Event of Default” under this Note.

 

6.                                       Remedies.  Upon the occurrence of an Event of Default,
the outstanding principal balance of this Note and all interest accrued thereon
shall, at the option of the holder of this Note and without presentment,
demand, protest, or further notice of any kind (all of which the Maker hereby
waives) become immediately due and payable in full.

 

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7.                                       Availability of Remedies.  The remedies of the Holder as provided herein
shall be cumulative and concurrent with all other remedies provided under the
Loan Agreement, the Loan Documents (as defined in the Loan Agreement) any such
other remedies provided by law or in equity, and may be pursued singly,
successively or together at the sole direction of the Holder and may be
exercised as often as occasion therefor shall arise.  No act or omission or commission by the
Holder, including specifically, any failure to exercise any right, remedy or
recourse, shall be deemed a waiver or release of the same, such waiver or
release to be effective only as set forth in a written document executed by the
Holder and then only to the extent specifically recited therein.  A waiver or release with reference to one
event shall not be construed as continuing as a bar to or as a waiver or
release of any subsequent right, remedy or recourse as to any subsequent
event.  If this Note is not paid when due,
regardless of how such maturity may be brought about, or is collected or
attempted to be collected by the initiation or prosecution of any suit, or any
probate or bankruptcy court proceeding or by any other judicial proceeding, or
is placed in the hands of an attorney for collection, then the Maker shall pay
in addition to all other amounts owing hereunder, all court costs and
reasonable attorneys’ fees incurred by the Holder in connection therewith.

 

8.                                       Waiver and Consent.  The Maker hereby waives presentment for
payment, notice of nonpayment, protest, notice of protest and all other
notices, filing of suit and diligence in collecting the amounts due under this
Note.

 

9.                                       Governing Law; Jurisdiction; Service of Process; Venue.  This Note shall be governed
by and construed in accordance with the internal laws of the State of Minnesota
without giving effect to its choice of law provisions.  Any judicial proceeding against or on behalf
of Maker with respect to this Note or any related agreement shall be brought
solely in any federal
or state court of competent jurisdiction located in
Hennepin County in the State of Minnesota. 
By execution and delivery of this Note, Maker (i) accepts the
exclusive jurisdiction of the aforesaid courts and irrevocably agrees to be
bound by any judgment rendered thereby, (ii) waives personal service of
process, (iii) agrees that service of process upon it may be made by
certified or registered mail, return receipt requested, and (iv) waives
any objection to jurisdiction and venue of any action instituted hereunder and
agrees not to assert any defense based on lack of jurisdiction, venue,
convenience or forum non conveniens. 
Nothing shall affect the right of the Holder to serve process in any
manner permitted by law or shall limit the right of the Holder to bring
proceedings against Maker in the courts of any other jurisdiction having
jurisdiction.  Any judicial proceedings
against the Holder involving, directly or indirectly, the Note or any
related agreement shall be brought solely in a federal or state court located
in Hennepin County in the State of Minnesota. 
All parties acknowledge that they participated in the negotiation and
drafting of this Note with the assistance of counsel and that, accordingly, no
party shall move or petition a court construing this Note to construe it more
stringently against one party than against any other.

 

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10.                                 Waiver of Jury Trial.     MAKER HEREBY EXPRESSLY
WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION ARISING UNDER
THIS NOTE OR IN ANY WAY CONNECTED WITH OR INCIDENTAL TO THE DEALINGS OF THE
MAKER WITH RESPECT TO THE LOAN AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
THEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE.  MAKER
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENTS OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE
RIGHTS TO TRIAL BY JURY.

 

11.                                 No Assignment. This Note may not be
assigned by the Maker without the prior written consent of Payee.

 

IN WITNESS WHEREOF, this Note has been duly executed by the Maker as of the day and
year first above written.

 

	
   

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  SITE EQUITIES

  
	
   

  	
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth Antos

  	
   

  
	
   

  	
   

  	
  President

  
					

 

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Schedule A

 

Principal Amount Outstanding

 

	
  Date of Installment

  	
   

  	
  Amount of Installment

  	
   

  	
  Principal Amount

  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5Exhibit 10.3

 

GUARANTY

 

THIS GUARANTY (the “Guaranty”)
is made effective as of the 22nd day of November, 2005 by
Paycenters, LLC, a Minnesota limited liability company (the “Guarantor”)
to and for the benefit of STEN Acquisition Corporation, a Minnesota corporation
(the “Beneficiary”).

 

BACKGROUND

 

A.            Site Equities
International, Inc., a Nevada corporation (the “Debtor”) and
Beneficiary are parties to that certain Loan and Merger Option Agreement dated
of even date herewith (as it may hereafter be amended or otherwise modified
from time to time, the “Agreement”) under which the Beneficiary, subject
to the terms and conditions set forth therein, will lend certain funds to
Debtor, which funds are being provided by Debtor to Guarantor for the purpose
of Guarantor’s acquisition of certain equipment and other items used in
Guarantor’s business.

 

B.            The Guarantor, as the
ultimate recipient of funds advanced by Beneficiary under the Agreement, will
benefit substantially from the transactions described in the Agreement.

 

C.            The Beneficiary is
willing to extend such credit to the Debtor under the Agreement and the Initial
Note (as defined in the Agreement) and Replacement Note (as defined in the
Agreement) on the condition that the Guarantor executes and delivers this Guaranty
to the Beneficiary as its absolute guaranty. 
This Guaranty serves as a material inducement for Beneficiary to enter
into the transactions set forth in and contemplated by the Agreement and Note.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Guarantor
agrees as follows:

 

1.             Guarantor hereby
absolutely and unconditionally guarantees to the Beneficiary the prompt payment
and full performance of each and every debt and obligation arising pursuant to
the terms of the Agreement, the Initial Note and the Replacement Note (all such
debts, liabilities, and obligations are collectively referred to herein as the “Secured
Obligations”).

 

2.             No act or thing need
occur to establish the liability of the Guarantor under this Guaranty, and no
act or thing, except full payment and discharge of all Secured Obligations,
will in any way exonerate the Guarantor or modify, reduce, limit or release the
liability of Guarantor under this Guaranty.

 

3.             This is an absolute,
unconditional and continuing guaranty of payment of and performance of the
Secured Obligations and will continue to be in force and be binding upon
Guarantor until all Secured Obligations are paid and satisfied in full.

 

 

4.             If the Guarantor is or
becomes insolvent (as defined under Title 11, U.S. Code or any similar federal
or state law for the relief of debtors) then the Beneficiary will have the
right to declare immediately due and payable, and the Guarantor will forthwith
pay to the Beneficiary, the full amount of all Secured Obligations, whether due
and payable or unmatured.  If the
Guarantor voluntarily commences or there is commenced involuntarily against the
Guarantor or the Debtor a case under the United States Bankruptcy Code, the
full amount of all Secured Obligations, whether due and payable or unmatured,
shall be immediately due and payable without demand or notice thereof.  If there exists and is continuing an Event of
Default (as defined in the Agreement), the full amount of all Secured
Obligations, whether due and payable or unmatured, shall be immediately due and
payable without demand or notice thereof.

 

5.             The Guarantor is
liable for all Secured Obligations, without any limitation as to amount, plus
accrued interest thereon and all attorneys’ fees, collection costs and
enforcement expenses referable thereto.

 

6.             Until such time as the
Secured Obligations have been indefeasibly paid in full to the Beneficiary, the
Guarantor waives and relinquishes any right of subrogation or other right of
recourse, contribution or reimbursement from the Debtor and any other right to
payment from the Debtor, arising out of or on account of any sums paid or
agreed to be paid by the Guarantor under this Guaranty, whether any such right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, secured, or unsecured.

 

7.             The Guarantor will pay
or reimburse the Beneficiary for all costs and expenses (including reasonable
attorneys’ fees and legal expenses) incurred by the Beneficiary in connection
with the successful protection, defense or enforcement of this Guaranty in any
litigation or bankruptcy or insolvency proceedings.

 

8.             Whether or not any
existing relationship between the Guarantor and the Debtor has been changed or
ended, the Beneficiary may, but is not obligated to, enter into transactions
resulting in the continuance of the Secured Obligations, without any consent or
approval by the Guarantor and without any notice to the Guarantor.  The liability of the Guarantor under this
Guaranty will not be affected or impaired by any of the following acts or
things (which the Beneficiary is expressly authorized to do, omit or suffer
from time to time, without notice to or approval by the Guarantor) except to
the extent that Beneficiary receives payment towards the Secured Obligations:

 

(a)           any acceptance of
collateral security, guarantors, accommodation parties, or sureties for any or
all Secured Obligations;

 

(b)           any one or more
extensions or renewals of the Secured Obligations (whether or not for longer
than the original period) or any modification of the interest rates, maturities
or other contractual terms applicable to any Secured Obligations;

 

2

 

(c)           any waiver or
indulgence granted to the Debtor, any delay or lack of diligence in the
enforcement of the Secured Obligations, or any failure to institute
proceedings, file a claim, give any required notices or otherwise protect any
Secured Obligations;

 

(d)           any full or partial
release of, settlement with, or agreement not to sue the Debtor, the Guarantor,
or other person liable in respect of any Secured Obligations;

 

(e)           any discharge of any
evidence of the Secured Obligations or the acceptance of any instrument in
renewal thereof or substitution therefor;

 

(f)            any failure to obtain
collateral security (including rights of setoff) for the Secured Obligations,
or to see to the proper or sufficient creation and perfection thereof, or to
establish the priority thereof, or to protect, insure, or enforce any
collateral security;

 

(g)           any foreclosure or
enforcement of any collateral security;

 

(h)           any transfer of any
Secured Obligations or any evidence thereof;

 

(i)            any order of
application of any payments or credits upon the Secured Obligations; or

 

(j)            any election by the
Beneficiary under §1111(b)(2) of the United States Bankruptcy Code.

 

9.             Guarantor waives any
and all defenses, claims and causes of action pertaining to the Secured
Obligations, except the defense of (i) discharge of payment in full (or
the defense of discharge in part with respect to any portion of the Secured
Obligations actually paid), and (ii) no or limited liability for the amount
claimed due and owing on account indemnification claims that are capable of
being timely asserted by the Debtor under Section 12 of the
Agreement.  Without limiting the
generality of the foregoing, the Guarantor will not assert, plead or enforce
against the Beneficiary any defense of setoff, suretyship, marshalling,
subrogation, waiver, release, discharge in bankruptcy of Debtor, statute of
limitations, res judicata,
statute of frauds, anti-deficiency statute, fraud, coercion, duress,
incapacity, minority, usury, illegality, or unenforceability which may be
available to the Guarantor or any other person liable in respect of any Secured
Obligations.  The Guarantor expressly
agrees that the Guarantor is and will remain liable for any deficiency
remaining after foreclosure of any mortgage or security interest securing the
Secured Obligations, whether or not the liability of the Guarantor or any other
obligor for such deficiency is discharged pursuant to statute or judicial
decision.

 

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10.           The Guarantor waives
presentment, demand for payment, notice of dishonor or nonpayment, and protest
of any instrument evidencing the Secured Obligations.  The Beneficiary is not required to first
resort for payment of the Secured Obligations from the Debtor or any other
persons or their assets or properties, or first to enforce, realize upon or
proceed against any collateral security for the Secured Obligations, before
enforcing this Guaranty.

 

11.           The Guarantor waives
all rights and defenses arising out of an election of remedies by the
Beneficiary, even though that election of remedies, such as a nonjudicial
foreclosure with respect to security for a guaranteed obligation, has destroyed
the Guarantor’s rights of subrogation and reimbursement against the principal
by the operation of applicable law.

 

12.           If any payment applied
by the Beneficiary to the Secured Obligations is thereafter set aside,
recovered, rescinded or required to be returned for any reason (including,
without limitation, the bankruptcy, insolvency or reorganization of the Debtor
or any other obligor), the Secured Obligations to which such payment was
applied shall for the purposes of this Guaranty be deemed to have continued in
existence, notwithstanding such application, and this Guaranty will be
enforceable as to such Secured Obligations as fully as if such application had
never been made.

 

13.           Beneficiary may demand
payment from the Guarantor of any installment (or portion thereof) of principal
or interest on the Notes, when due, and the Guarantor shall immediately pay the
same to the Beneficiary, and the Beneficiary may demand payment or performance
of any or all of the other Secured Obligations, when such payment or
performance is due or required and the Guarantor shall immediately pay or
perform the same, whether or not the Beneficiary has (1) accelerated
payment of the Secured Obligations; or (2) commenced repossession of, or
foreclosure of any security interest, mortgage or other lien in, any or all of
the collateral securing the Secured Obligations; or (4) otherwise
exercised its rights and remedies hereunder or under the Secured Obligations,
the documents related thereto or applicable law.

 

14.           The liability of the
Guarantor under this Guaranty is in addition to and shall be cumulative with
all other liabilities of the Guarantor to the Beneficiary as a Guarantor or
otherwise, without any limitation as to amount, unless the instrument or
agreement evidencing or creating such other liability specifically provides to
the contrary.

 

15.           This Guaranty shall be
effective upon delivery to the Beneficiary, without further act, condition or
acceptance by the Beneficiary, shall be binding upon the Guarantor and the
successors and assigns of the Guarantor and shall inure to the benefit of the
Beneficiary and its participants, successors and assigns.  Any invalidity or unenforceability of any
provision or application of this Guaranty shall not affect other lawful
provisions and application hereof, and to this end the provisions of this
Guaranty are declared to be severable. 
This Guaranty may not be waived, modified, amended, terminated, released
or otherwise changed except by a writing signed by the Guarantor and the
Beneficiary.

 

4

 

16.           This Guaranty shall be
governed by the laws of the State of Minnesota without regard to conflict of
law principles of any jurisdiction.  Any
judicial proceeding with respect to this Agreement shall be brought solely any
federal or state court of competent jurisdiction located in Hennepin County in
the State of Minnesota.  By execution and
delivery of this Guaranty, Guarantor: (i) accepts the exclusive
jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any
judgment rendered thereby, (ii) waives personal service of process, (iii) agrees
that service of process upon it may be made by certified or registered mail,
return receipt requested, and (iv) waives any objection to jurisdiction
and venue of any action instituted hereunder and agrees not to assert any
defense based on lack of jurisdiction, venue, convenience or forum non
conveniens.

 

17.           GUARANTOR HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
ARISING UNDER THIS GUARANTY OR IN ANY WAY CONNECTED WITH OR INCIDENTAL TO THE
DEALINGS WITH RESPECT TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY,
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE.  GUARANTOR HEREBY
AGREES AND CONSENTS THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY
COURT TRIAL WITHOUT A JURY, AND THAT AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE GUARANTOR TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

IN WITNESS WHEREOF, the Guarantor has
caused this Guaranty to be signed and dated as of the date first above written.

 

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
  PAYCENTERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kenneth Antos

  	
   

  
	
   

  	
  Its:

  	
  Manager

  
					

 

5

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