Document:

ex4-2.htm

BLUEGATE CORPORATION

 

Exhibit 4.2

CONVERSION OF DEBT TO EQUITY – SIGNATURE ACCEPTANCE PAGE

Instructions: To authorize your conversion of debt to equity, please complete this Signature Acceptance Page and e-mail or fax (713-682-7402) it to the attention of Charles E. Leibold.

SUBSCRIPTION AGREEMENT

BLUEGATE CORPORATION

Investor Name:                    SAI Corporation (“SAIC”)

 

Address:       180 North Stetson Avenue, Suite 700

                      Chicago, Illinois 60601

 

Telephone No.:            (312) 602-7000

 

Total Debt Converted and Promissory Note and Security Agreement Modifications:

 

SAIC has agreed to grant a concession to Bluegate Corporation for the purchase of 10 shares of a newly created Series D Convertible non-Redeemable Preferred Stock, par value $.001, by modifying the Promissory Note and Security Agreement as follows: (1) SAIC's waiver of accrued interest of $84,740 for the period from February 1, 2010 through May 22, 2010, and (2) to waive any applicable interest payments for the period from May 23, 2010 through December 31, 2010 (estimated to be up to $109,973 without any present value effect). Effective January 1, 2011, if the Promissory Note is still in place, interest payments resume at the rate of 15% per annum.

 

IN WITNESS WHEREOF, the undersigned Investor has executed this Subscription Agreement on May 22, 2010.

(signed)                _________________________

Investor

SAI Corporation

By: /s/ Stephen J. Sperco

Stephen J. Sperco

President

May 22, 2010

• 701 NORTH POST OAK ROAD • SUITE 600 • HOUSTON, TEXAS 77024 • 713-686-1100 •ex4-4.htm

Exhibit 4.4

PROMISSORY NOTE AND

SECURITY AGREEMENT

-Credit Line-                                                                                                                                     May 22, 2010

	
  

	
$1,200,000

FOR VALUE RECEIVED, the undersigned, Bluegate Corporation (the “Debtor”), promises to pay to the order of SAI Corporation or its assigns (the “Secured Party”), at such place as Secured Party may designate in writing, in lawful money of the United States of America and in immediately available funds, up to the full principal amount of $1,200,000.00 with interest at the rate of 15% per annum.

This note possesses a revolving or draw feature. Debtor shall be entitled to borrow up to the full principal amount of the note from time to time during the term of the note.   It is agreed by the Debtor that in accordance with this note, as of May 1, 2010, the Secured Party has advanced the aggregate amount of approximately $1,200,000.00. Principal and interest due hereunder shall be payable on demand. Interest payments are due through October 31, 2009. Interest payments for the period from November 1, 2009 through January 31, 2010 have been eliminated. Effective February 1, 2010 interest payments resumed at the rate of 15% per annum.

 

SAIC has agreed to grant a concession to the Company for the purchase of 10 shares of a newly created Series D Convertible non-Redeemable Preferred Stock, par value $.001, by modifying this Promissory Note and Security Agreement as follows: (1) SAIC's waiver of accrued interest of $84,740 for the period from February 1, 2010 through May 22, 2010, and (2) to waive any applicable interest payments for the period from May 23, 2010 through December 31, 2010 (estimated to be up to $109,973 without any present value effect). Effective January 1, 2011, if the Promissory Note is still in place, interest payments resume at the rate of 15% per annum.

 

The unpaid principal balance of this note at any time shall be the total amounts loaned or advanced hereunder by the Secured Party less the amount of payments or prepayments of principal made hereon by or for the account of the Debtor.  Each time the Debtor desires to receive an advance under this note, Debtor shall deliver a written request for advance to Secured Party.  Debtor shall give Secured Party no fewer than one (1) business day’s notice prior to the date Debtor requests for any such advance to be made by Secured Party.   Advances hereunder may be made by the Secured Party hereof upon request therefor from Debtor and approval of such request by the Secured Party hereof.  Debtor covenants that all advances shall be used for working capital and other expenditures for Debtor business.

Debtor shall have the right to prepay this note, in whole or in part, at any time without penalty.

The entire unpaid principal balance of this note shall immediately become due and payable, at the option of Secured Party, upon the occurrence of either of the following events of default (each, and “event of Default”): (a) Failure by Debtor to pay all interest or principal hereunder as and when the same becomes due and payable in accordance with the terms hereof, or (b) failure by Debtor to comply with any other covenant hereunder and such failure continues for three (3) days after written notice of such failure.

In the event an Event of Default specified above shall occur, Secured Party may proceed to protect and enforce its rights by suit in equity and/or by action at law or by other appropriate proceedings.  No delay on the part of Secured Party in the exercise of any power or right under this note, or under any other instrument executed pursuant thereto shall operate as a waiver thereof, nor shall a single or partial exercise of any other power or right preclude further exercise thereof.  Notwithstanding anything to the contrary contained herein, if an Event of Default shall occur, all payments thereafter made hereunder shall be applied, at the option of Secured Party, first to costs of collection, and then to principal.

It is hereby specially agreed that if this note is placed into the hands of an attorney for collection, or if proved, established, or collected in any court, Debtor agrees to pay to Secured Party an amount equal to all expenses incurred in enforcing or collecting this note, including court costs and reasonable attorneys’ fees.

Except for the notice expressly provided herein, Debtor hereby waives presentment for payment, notice of nonpayment, demand, notice of demand, protest, notice of protest, diligence in collection, grace and without further notice hereby consents to renewals, extensions, or partial payments either before or after maturity.

All agreements between Debtor and Secured Party, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever shall the amount paid, or agreed to be paid, to Secured Party hereof for the use, forbearance, or detention of the money advance to Debtor, or for the performance or payment on any covenant or obligation contained herein, exceed the maximum amount permissible under applicable federal or state law.

	
  

	
This note shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America, except that Chapter 346 of the Texas Finance Code governing the rights and obligations of parties in certain revolving charge amounts, shall not apply hereto. In the event any one or more of the provisions contained herein shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected thereby.

 

This note cancels and supersedes that certain Promissory Note dated November 7, 2009 between Debtor and Secured Party with a credit line of up to $1,200,000.00 with interest at the rate of 15% per annum.

Grant of Security Interest

As a condition for Secured Party to agree to lend Debtor the funds contemplated herein, Debtor grants to Secured Party, a security interest in its property, tangible and intangible, including but not limited to:  all accounts, now existing or subsequently arising; all contract rights of Debtor, now existing or subsequently arising; all accounts receivable, now existing or subsequently arising; all chattel paper, documents, and instruments related to accounts; all inventory, furniture, fixtures, equipment, and supplies now owned or subsequently acquired; and the proceeds, products, and accessions of and to any and all of the foregoing (the “Collateral”).

This security interest is granted to secure the debt evidenced by this note and agreement and all costs and expenses incurred by Secured Party in the collection of the debt.

Secured Party, in its discretion, may file one or more financing statements under the Texas Uniform Commercial Code, naming Debtor as a debtor and Secured Party as secured party and indicating the Collateral specified in this Promissory Note and Security Agreement.

  

  

  

EXECUTED on May 22, 2010.

 

BLUEGATE CORPORATION                                                                                    

                                                                             .

 

 

By:________________________________

       Charles E. Leibold                                                                                     

       Its CFO

Bluegate Corporation

By: /s/ Charles E. Leibold

       Charles E. Leibold

       Chief Financial Officer

May 22, 2010exh10_1.htm

Exhibit 10.1

 

SECOND AMENDMENT TO LOAN DOCUMENTS

THIS SECOND AMENDMENT TO LOAN DOCUMENTS (“Amendment”), dated May 25, 2010, but effective as of May 25, 2010, by and between FIRST HAWAIIAN BANK, a Hawaii corporation (the “Lender”), and PACIFIC OFFICE PROPERTIES, L.P., a Delaware limited partnership (the “Borrower”); and SHIDLER EQUITIES L.P., a Hawaii limited partnership (the “Pledgor”);

 

W I T N E S S E T H T H A T:

 

WHEREAS, the Lender and the Borrower entered into that certain credit agreement (the “Credit Agreement”), dated September 2, 2009, relating to a credit facility (the “Credit Facility”) in the principal amount of $10,000,000.00 made by the Lender to the Borrower; and

 

WHEREAS, in connection therewith, the Borrower and the Lender executed certain “Loan Documents”, as defined in the Credit Agreement; and

 

WHEREAS, pursuant to that certain Amendment to Loan Documents dated December 31, 2009, the principal amount of the Credit Facility was increased to $15,000,000.00; and

 

WHEREAS, the Borrower has requested the Lender to further increase the principal amount of the Credit Facility to $25,000,000.00 and to extend the Maturity Date of the Credit Facility to December 31, 2013; and

 

WHEREAS, the Lender is willing to comply with such request, upon and subject to the terms and conditions hereinafter set forth; and

 

NOW, THEREFORE, the Lender and the Borrower hereby agree as follows:

 

1. Definitions. All capitalized terms used herein, unless otherwise defined herein, shall have the same meanings as those ascribed to them in the Credit Agreement.

 

2.  Representations and Warranties. As an essential inducement to the Lender to execute this Amendment, the Borrower hereby repeats, reaffirms and incorporates herein by reference all of the representations and warranties contained in Section 3 of the Credit Agreement.

 

3. Amendment of Loan Documents. The Loan Documents are hereby amended as follows:

 

(a) The “Maximum Commitment” of the Credit Facility, as that term is used in that certain Note dated September 2, 2009, shall be TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000.00).

	
                                                                   

  

  

  

 

(b) The Pledgor shall increase the amount of the “Account”,as described in that certain Pledge and Security Agreement dated September 2, 2009 (the “Pledge”) to TWENTY-F IVE MILLION AND NO/100 DOLLARS ($25,000,000.00).

 

(c) The Maturity Date of the Credit Facility shall be December 31, 2013, or the date, following the occurrence of an Event of Default, on which the Lender notifies the Borrower that the entire Principal Balance, together with all accrued interest thereon, the amount of all outstanding Letters of Credit, and all fees, charges and expenses, and all other sums payable under the Credit Agreement, the Note and the other Loan Documents, shall become due and payable.

 

(d) As used in the Credit Agreement and the other Loan Documents, the term “Maturity Date” shall mean the Maturity Date described in Paragraph 3(c) of this Amendment.

 

(e) As used in the Credit Agreement and the other Loan Documents, the term “Note” shall mean the promissory note described in Section 1 of the Credit Agreement, as amended by this Amendment.

 

(f) As used in the Credit Agreement and the other Loan Documents, the term “Pledge and Security Agreement” shall mean the pledge and security agreement described in Section 1 of the Credit Agreement, as amended by this Amendment, pursuant to which the Pledgor will increase the amount of the “Account” thereunder to $25,000,000.00.

 

 4. Delivery of Related Documents. The Borrower shall deliver to the Lender on or before the closing of this Amendment (except as provided below), the following documents, all of which shall be in form and substance satisfactory to the Lender and its counsel:

 

                  (a) Certificate of Secretary of Pacific Office Properties Trust, Inc.

 

                  (b) Certificate of Secretary of Shidler Equities Corp.

 

        (c) Opinion of counsel for the Pledgor confirming its prior opinion notwithstanding the increase in the amount of the Account under the Pledge and Security Agreement, which shall be provided to the Lender no later than thirty (30) days after the closing of this Amendment.

 

         5.  Conformance. The Loan Documents are hereby amended to conform with this Amendment, but in all other respects such provisions are to be and continue in full force and effect.

 

 6. Continuance of Security. The performance of the obligations of the Borrower under the Loan Documents, as herein amended, shall be fully secured by and entitled to the benefits of all of the security documents agreements described in the Credit Agreement and the other Loan Documents, and any modifications, extensions, renewals or replacements thereof.

 

 7. Continuing Pledge. Pledgor hereby consents to the foregoing amendments, reaffirms its obligations under the Pledge, as amended by this Amendment, and covenants that the execution and delivery of this Amendment shall not in any way affect, impair or diminish its obligations under

	
                                                                 

  

  

  

 

the Pledge, except for the increase of the principal amount of the certificate of deposit pledged thereunder to $25,000,000.00.

 

8.  No Offsets. As of the date hereof, the Borrower has no claims, defenses or offsets against the Lender or against the Borrower’s obligations under the “Loan Documents”, as herein amended, whether in connection with the negotiations for or closing of the Credit Facility, of this Amendment, or otherwise, and if any such claims, defenses or offsets exist, they are hereby irrevocably waived and released. As of the date hereof, the Pledgor has no claims, defenses or offsets against the Lender or against the Pledgor’s obligations under the Pledge, whether in connection with the negotiations for or closing of the Credit Facility, of this Amendment, or otherwise, and if any such claims, defenses or offsets exist, they are hereby irrevocably waived and released.

 

9.  No Waiver. This Amendment is made on the express condition that nothing herein contained shall in any way be construed as affecting, impairing or waiving any rights of the Lender under any of the Loan Documents, as herein amended.

 

10.  Entire Agreement. This Amendment incorporates all of the agreements between the parties relating to the amendment of the Loan Documents and supersedes all other prior or concurrent oral or written letters, agreements or understandings relating to such amendment. This Amendment shall constitute and be deemed amendments to any inconsistent provisions of any commitment letter issued by the Lender to the Borrower in connection with the amendment to the Loan Documents, and, upon the execution of this Amendment, any such commitment letter shall be deemed superceded by this Amendment and cancelled.

 

11.  Headings. The headings of paragraphs and subparagraphs herein are inserted only for convenience and reference, and shall in no way define, limit or describe the scope or intent of any provisions of this Amendment.

 

12.  Governing Law; Severability. This Amendment is executed and delivered, and shall be construed and enforced, in accordance with and governed by the laws of the State of Hawaii. If any provision of this Amendment is held to be invalid or unenforceable, the validity or enforceability of the other provisions of this Amendment shall remain unaffected.

 

13.  Submission to Jurisdiction; Waiver of Jury Trial. The Borrower hereby irrevocably and unconditionally submits, but only for the purposes of any action or proceeding which the Lender may bring to enforce any of the Loan Documents, as amended herein, to the jurisdiction of the courts of the State of Hawaii and the United States District Court for the District of Hawaii. Such submission to such jurisdiction shall not prevent the Lender from commencing any such action or proceeding in any other court having jurisdiction. The Borrower hereby knowingly, voluntarily and intentionally waives any right it may have to a jury trial in any legal proceeding which may be hereinafter instituted by the Lender or the Borrower to assert any of their respective claims arising out of or relating to any of the Loan Documents or any other agreement, instrument or document contemplated thereby. In such event, the Borrower, at the request of the Lender, shall cause its attorney of record to effectuate such waiver in compliance with the Hawaii Rules of Civil Procedure, as the same may be amended from time to time.

	
                                                                 

  

  

  

 

14.  Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument, and in making proof of this Amendment, it shall not be necessary to produce or account for more than one such counterpart.

 

15.  Expenses. The Borrower shall pay all expenses incurred by the Lender in negotiations for and documentation of this Amendment and the satisfaction of the conditions thereof, including, but not limited to, fees and expenses of legal counsel for the Lender (and each participant in, or purchaser of, the Credit Facility), and any other costs incurred by the Lender in connection with any of the matters described in this Amendment.

 

16.  Binding Effect. This Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that Borrower shall not assign this Amendment or any of the rights, duties or obligations of Borrower hereunder without the prior written consent of Lender.

 

17.  Compliance with OFAC Restrictions. The Lender and the Borrower are obligated to comply with the laws and regulations administered by the United States Office of Foreign Assets Control ("OFAC"), referred to as "OFAC Restrictions". In order to comply with OFAC Restrictions, the Lender may be required to temporarily suspend processing a transaction, which may result in delayed availability of funds, or may be prohibited from closing a transaction altogether. The Borrower agrees to the foregoing, and further agrees that if the Lender is required by applicable OFAC Restrictions to suspend processing a transaction, or is prohibited from by applicable OFAC Restrictions from closing a transaction, the Lender will not be liable for any damages of any kind or nature (including, without limitation, actual, consequential, special, incidental, punitive, or indirect damages, whether arising out of claims for "lender liability" or any other cause), which the Borrower may suffer or incur in connection with such suspension of, or failure to close, a transaction.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment the day and year first above written.

 

	 	FIRST HAWAIIAN BANK	 
	 	 	 	 
	
 

	
By: 

	/s/ Paula C. H. Chang	 
	 	 	Its Vice President	 
	 	 	 	 
	 	 	 	 Lender

 

 

 

	
                                                             

  

  

  

 

	 	PACIFIC OFFICE PROPERTIES, L.P. a Delaware limited partnership	 
	 	 	 	 
	
 

	
By: 

	Pacific Office Properties Trust, Inc.	 
	 	 	a Maryland corporation	 
	 	 	Its General Partner	 
	 	 	 	 

 

	 	 	 	 
	
 

	
By: 

	/s/ James R. Wolford	 
	 	 	Its Chief Financial Officer	 
	 	 	 	 
	 	 	 	 Borrower

 

	 	SHIDLER EQUITIES L.P.	 
	 	 	 	 
	
 

	
By: 

	Shidler Equities Corp.	 
	 	 	Its General Partner	 
	 	 	 	 

 

	 	 	 	 
	
 

	
By: 

	/s/ Lawrence J. Taff	 
	 	 	Its Secretary	 
	 	 	 	 
	 	 	 	 "Pledgor"

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