Document:

Exhibit 10.4

 

 

SECURED PROMISSORY NOTE

 

	
  Date:

  	
   

  	
  March
  15, 2005

  
	
   

  	
   

  	
   

  
	
  Maker:

  	
   

  	
  BLUE
  WIRELESS & DATA, INC.

  
	
   

  	
   

  	
  3001
  Knox St., Suite 401, Dallas, TX 75205

  
	
   

  	
   

  	
  Contact:
  John W. Mills, III, COO

  
	
   

  	
   

  	
  fax:
  (214) 389-2167

  
	
   

  	
   

  	
   

  
	
  Payee/Holder:

  	
   

  	
  GREG
  MARTIN

  
	
   

  	
   

  	
  6032
  Canvas Back Dr., Frisco, TX 75034

  
	
   

  	
   

  	
  fax:
  (214) 853-5538

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STEVEN
  BENAVIDES

  
	
   

  	
   

  	
  1740
  Elmhurst Ct., Prosper, TX 75078

  
	
   

  	
   

  	
  fax:
  (214) 853-5538

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
  DSG
  TECHNOLOGY, INC. d/b/a PANABAND

  
	
   

  	
   

  	
  4760
  Preston Road, Suite 244-272, Frisco, Texas 75034

  
	
  Guarantor:

  	
   

  	
  TKM
  OIL & GAS, INC.

  
	
   

  	
   

  	
  3001
  Knox St., Suite 403, Dallas, TX 75205

  
	
   

  	
   

  	
   

  
	
  Principal:

  	
   

  	
  FOUR
  HUNDRED FORTY-FIVE THOUSAND, NINETY-TWO AND NO/100

  
	
   

  	
   

  	
  DOLLARS
  ($445,092.00)

  
	
   

  	
   

  	
   

  
	
  Annual Interest Rate on Unpaid Principal:  

  	
   

  	
  0.00% per annum, provided that the interest
  payable shall not exceed the maximum amount that may be lawfully
  charged.  Interest will be calculated on the unpaid principal to the
  date of each payment.

  
	
   

  	
   

  	
   

  
	
  Maturity
  Date:

  	
   

  	
  April
  1, 2006

  
	
   

  	
   

  	
   

  
	
  Terms
  of Payment:

  	
   

  	
  Principal
  and interest (if any) shall be due and payable in twelve monthly payments of
  $37,091.00 each, payable on the 1st
  day of each month (the “Monthly Payment Date”) beginning April 1, 2005, and
  ending on the Maturity Date when all unpaid principal and interest shall be
  due and payable. The first payment hereunder shall be in the form of a
  cashier’s check.

  
	
   

  	
   

  	
   

  
	
  Security:

  	
   

  	
  The “Security” shall include both of
  the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
  100% of the stock equity of the Company, including all of the assets
  and operations of the Company’s d/b/a, Panaband (the “Collateral”), and which
  is perfected in a Stock Pledge Agreement attached hereto as Exhibit “A”
  hereto.

  
	
   

  	
   

  	
  b.

  	
  To the extent not included in “a.” above, all assets, including
  equipment and customers, associated with the eight towers identified in the
  Exhibits to the Stock Purchase Agreement, executed by the parties and entered
  into on the same date hereof. In addition, these “assets” shall include the
  right to purchase from Maker at a fair market rate sufficient Internet access
  and bandwidth for a period of no less than 60 days.

  
	
   

  	
   

  	
  c.

  	
  The proceeds of any transaction involving the foregoing Collateral
  and assets.

  
						

 

 

	
  Initials:

  	
   

  	
   

  

 

1

 

	
  Obligation:

  	
   

  	
  Maker promises to pay to the order of Payee at the place for payment
  and according to the terms of payment herein.  All unpaid amounts shall
  be due by the Maturity date.

  

 

General
Terms

 

1.                                       Tender.  All amounts payable hereunder are
payable in lawful money of the United States.

 

2.                                       Events of Default.  At the option of Holder, the entire
principal balance and accrued interest owing hereon shall become due and
payable upon notice and demand upon the occurrence of any of the following
events:

 

a.               Default in the payment of any installment of
principal or interest which has remained uncured for more than 30 days;

b.              The bankruptcy or insolvency of, the
assignment for the benefit of creditors by, or the appointment of a receiver
for any of the property of Maker.

 

3.                                       Security.  This Note is secured by the Security
identified herein.

 

4.                                       Limitations on Dispositions of
Collateral. Maker will not
directly or indirectly (through the sale of stock, merger or otherwise),
without the prior written consent of Payee, sell, transfer, lease or otherwise
dispose of any of the Collateral, or attempt, offer or contract to do so except
for sales of inventory or services in the ordinary course of its business for
fair value in arm’s-length transactions. 
The inclusion of proceeds of the Collateral under the security interests
granted hereby shall not be deemed a consent by Payee to any sale or
disposition of any Collateral other than as permitted by this agreement.   Maker covenants and agrees that without
Payees’ prior written consent, Maker will not change the location of the
Collateral (other than inventory in the ordinary course of business) or the
records pertaining to the Collateral, other than from the offices of Maker.

 

5.                                       Guarantee.  TKM
Oil & Gas, Inc. (“TKM”), does hereby guaranty to Holder the prompt,
punctual and full payment of all monies owed to Holder from Maker.  Until termination, this guaranty is unlimited
as to amount or duration and shall remain in full force and effect
notwithstanding any extension, compromise, adjustment, forbearance, waiver,
release or discharge of any party obligor or guarantor, or release in whole or
in part of any security granted for said indebtedness or compromise or
adjustment thereto, and TKM waives all notices thereto.  The obligations of TKM shall be at the
election of Holder, shall be primary and Holder shall not be required to
exhaust its remedies as against Maker prior to enforcing its rights under this
guaranty against TKM.  The guaranty
hereunder shall be unconditional and absolute. 
TKM waives all rights of subrogation and set-off until all sums under
this guaranty are fully paid.  In the
event payments due under this guaranty are not paid upon demand, TKM shall pay
all reasonable costs and attorney’s fees necessary for collection, and
enforcement of this guaranty.  Such
termination shall extend only to the terms of this document.  TKM warrants and represents it has full
authority to enter into this guaranty. 
This guaranty shall be binding upon and inure to the benefit of the
parties, their successors, assigns and personal representatives.  Holder may from time to time, but no more
often than once per month during the Term, request and receive a copy of the
financial statements of any Guarantor.

 

6.                                       No Waiver.  The failure to exercise the option to
accelerate the maturity of this Note upon the happening of any one or more of
the events of default hereunder shall not constitute a waiver of the right of
the holder of this Note to exercise the same or any other option at that time
or at any subsequent time with respect to such uncured default or any other
event of default hereunder.

 

2

 

7.                                       Prepayment.   Maker may prepay the principal
of this Note without penalty at any time during the term of this Note.

 

8.                                       Late Payments.  A late payment penalty of 1% of the
monthly payment shall be charged for all payments not made within ten (10) days
of the Monthly Payment Date.

 

9.                                       Nonusurious.  All agreements between Maker and the
holder hereof, whether now existing or hereafter arising and whether written or
oral, are hereby limited so that in no contingency, whether by reason of demand
for payment or acceleration of the maturity hereof or otherwise, shall the
interest contracted for, charged or received by the holder hereof exceed the
maximum amount permissible under applicable law.  If, from any
circumstance whatsoever, interest would otherwise be payable to the holder
hereof in excess of the maximum lawful amount, the interest payable to the
holder hereof shall be reduced to the maximum amount permitted under applicable
law; and if from any circumstance the holder hereof shall ever receive anything
of value deemed interest by applicable law in excess of the maximum lawful
amount, an amount equal to any excessive interest shall be applied to the
reduction of the principal hereof and not to the payment of interest, or if
such excessive interest exceeds the unpaid balance of principal hereof such
excess shall be refunded to Maker.  All interest paid or agreed to be paid
to the holder hereof shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full period until
payment in full of the principal (including the period of any renewal or
extension hereof) so that the interest hereon for such full period shall not
exceed the maximum amount permitted by applicable law.  This paragraph
shall control all agreements between Maker and the holder hereof.

 

10.                                 Headings.  The article, paragraph and
subparagraph headings hereof are inserted for convenience of reference only and
shall not alter, define, or be used in construing the text of such articles,
paragraphs or subparagraphs.

 

11.                                 Plurality.  When the context requires, singular
nouns and pronouns include the plural.

 

12.                                 Governing Law and
Jurisdiction.  This
Note shall be governed by and construed in accordance with the laws of the
State of Texas, without reference to its conflict of laws rules.  Jurisdiction and venue shall reside
exclusively in the courts of Dallas County, Texas.

 

13.                                 Severability.  If
any provision of this Note is held to be invalid or unenforceable by any court
of competent jurisdiction, it is the intent of all of the parties that all
other provisions of this Note be construed to remain fully valid, enforceable
and binding on the parties.

 

14.                                 Power to Bind.  A
responsible officer of the Maker has read and understands the contents of this
Agreement and is empowered and duly authorized on behalf of the Maker to
execute it.

 

IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives
to execute this Secured Promissory Note effective on the Date first stated
herein.

 

	
  MAKER:

  	
   

  
	
   

  	
   

  
	
  /s/ John W. Mills, III

  	
   

  	
   

  
	
  BLUE
  WIRELESS & DATA, INC.

  	
   

  
	
  John
  W. Mills, III, COO

  	
   

  
			

 

3

 

	
  PAYEE
  / HOLDER:

  	
   

  
	
   

  	
   

  
	
  /s/ Greg Martin

  	
   

  	
  /s/ Steven Benavides

  	
   

  
	
  GREG
  MARTIN

  	
  STEVEN
  BENAVIDES

  
	
   

  	
   

  
	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Dennis G. McLaughlin, III

  	
   

  	
   

  
	
  TKM
  OIL & GAS, INC.

  	
   

  
	
  Dennis
  G. McLaughlin, III, CEO

  	
   

  

 

4Exhibit 10.5

BILL OF SALE

 

	
  Date:

  	
   

  	
  March
  15, 2005

  
	
   

  	
   

  	
   

  
	
  Sellers:

  	
   

  	
  GREG
  MARTIN

  
	
   

  	
   

  	
  6032
  Canvas Back Dr., Frisco, TX 75034

  
	
   

  	
   

  	
  fax:
  (214) 853-5538

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STEVEN
  BENAVIDES

  
	
   

  	
   

  	
  1740
  Elmhurst Ct., Prosper, TX 75078

  
	
   

  	
   

  	
  fax:
  (214) 853-5538

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  BLUE
  WIRELESS & DATA, INC.

  
	
   

  	
   

  	
  3001
  Knox St., Suite 401, Dallas, TX 75205

  
	
   

  	
   

  	
  Contact:
  John W. Mills, III, COO

  
	
   

  	
   

  	
  fax:
  (214) 389-2167

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
  DSG
  TECHNOLOGY, INC. d/b/a PANABAND

  
	
   

  	
   

  	
  4760
  Preston Road, Suite 244-272, Frisco, Texas 75034

  
	
   

  	
   

  	
   

  
	
  Interest:

  	
   

  	
  100%
  of the equity ownership of Company, its capital accounts, all rights

  
	
   

  	
   

  	
  represented
  by such equity interests, and all goodwill associated therewith.

  
	
   

  	
   

  	
   

  
	
  Consideration:

  	
   

  	
  The “Consideration” shall be inclusive of all of the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  A Convertible Debenture in the principal amount of $1,000,000, which
  is attached hereto as Exhibit 1; and

  
	
   

  	
   

  	
  2.

  	
  A Secured Promissory Note in the principal amount of $445,092,
  secured by a Stock Pledge Agreement, both of which are attached hereto as
  Exhibit 2.

  
	
  Recitals

  

 

WHEREAS:

 

A.           The Company is engaged in the provision of broadband wireless Internet
service.

B.             Sellers are the sole shareholders of the
Company.

C.             Buyer wishes to pay Sellers the Consideration
for the purchase of the Interest, and upon the terms and subject to the
conditions set forth in the Stock Purchase Agreement executed by the parties on
the same date hereof (“Stock Purchase Agreement”).

D.            Sellers wish to sell Buyer the Interest in
exchange for the Consideration, and upon the terms and subject to the conditions
set forth in the Stock Purchase Agreement.

 

Agreement

 

NOW,
THEREFORE, in consideration of the foregoing premises and the representations,
warranties, and covenants hereinafter set forth, and for other good and
valuable consideration, including the Consideration as herein defined, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

1.                                       Stock Purchase Agreement.  This
Bill of Sale is being executed and delivered pursuant to the terms of that
certain Stock Purchase Agreement, dated as of the Closing Date, by and among
Sellers and Buyer.  Capitalized terms
used in this Bill of Sale and not otherwise defined shall have the meanings
assigned in the Stock Purchase Agreement. 
Furthermore, the parties do each hereby reaffirm, attest to,
acknowledge, ratify and fully incorporate the terms of the Stock Purchase
Agreement with their execution of this Bill of Sale.

 

2.                                       Sale and Purchase. 
Sellers hereby assign, transfer, convey, and sell to Buyer, the
Interest, as

 

 

	
  Initials:

  	
   

  	
   

  

 

1

 

defined herein, together with the Company’s related
capital accounts, all rights represented by such shareholder interests, and all
goodwill associated therewith, according to and under the terms and conditions
and representations of the Stock Purchase Agreement.

 

3.                                       Payment of Consideration.  
Buyer hereby pays, grants and transfers to Seller, and Seller hereby
acknowledges receipt of as full and complete consideration for the Interest,
the Consideration.

 

4.                                       Other Documents.  Each
party shall promptly execute and deliver to the other party all such further
instruments, assignments, assurances and other documents as such party may
reasonably request in connection with its performance under this Bill of Sale
and the transactions contemplated hereby and by the Stock Purchase Agreement.

 

5.                                       Delivery of Property.  Sellers
hereby represent, warrant and certify to Buyer that on or before the date
hereof, Sellers have delivered to Buyer all of the Company property in their
possession or control or to which they have had access during their association
with the Company, and that they have retained no copy thereof.

 

6.                                       Warranty. 
Sellers, for themselves and their personal representatives and assigns,
covenant and agree to warrant and defend the transfer, assignment and
conveyance of the Interest and Buyer’s title thereto.

 

7.                                       Binding Effect;
Permissibility of Assignment.  This Bill of Sale and all of
the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, and all
future shareholders of the Company.

 

8.                                       Governing Law and
Jurisdiction.  This
Bill of Sale shall be governed by and construed in accordance with the laws of
the State of Texas, without reference to its conflict of laws rules.  Jurisdiction and venue shall reside
exclusively in the courts of Dallas County, Texas.

 

9.                                       Severability.  If
any provision of this Bill of Sale is held to be invalid or unenforceable by
any court of competent jurisdiction, it is the intent of all of the parties
that all other provisions of this Bill of Sale be construed to remain fully
valid, enforceable and binding on the parties.

 

10.                                 Equitable Remedies.  In
the event of any breach of this Bill of Sale or the Stock Purchase Agreement,
the provisions of this Bill of Sale may be enforceable in a court of equity by
a decree of specific performance.  Any
equitable remedy shall not be exclusive and shall be in addition to any other
remedy available.

 

11.                                 Power to Bind.  A
responsible officer of the Company and the Buyer has read and understands the
contents of this Agreement and is empowered and duly authorized on behalf of
the Company and the Buyer to execute it.

 

12.                                 Plurality   When the context requires, singular nouns and pronouns include the
plural.

 

2

 

IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this Bill of Sale effective on the Date first stated
herein.

 

	
  SELLERS:

  	
   

  
	
   

  	
   

  
	
  /s/ Greg Martin

  	
   

  	
  /s/ Steven Benavides

  	
   

  
	
  GREG
  MARTIN

  	
  STEVEN
  BENAVIDES

  
	
   

  	
   

  
	
  STATE OF TEXAS

  	
   

  
	
  COUNTY OF DALLAS

  	
   

  
	
   

  	
   

  
	
  This
  instrument was acknowledged before me on the 15th of March, 2005,
  by GREG MARTIN.

  
	
   

  	
   

  
	
   

  	
  /s/ Marcella Smith

  	
   

  
	
   

  	
  Notary
  Public, State of Texas

  
	
   

  	
   

  
	
  BUYER:

  	
   

  
	
   

  	
   

  
	
  /s/ John W. Mills, III

  	
   

  	
   

  
	
  BLUE
  WIRELESS & DATA, INC.

  	
   

  
	
  John
  W. Mills, III, COO

  	
   

  
	
   

  	
   

  
	
  STATE OF TEXAS

  	
   

  
	
  COUNTY OF DALLAS

  	
   

  
	
   

  	
   

  
	
  This
  instrument was acknowledged before me on the 14th of March, 2005,
  by John W. Mills, III, COO of BLUE WIRELESS & DATA, INC., on behalf of
  said corporation.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Marcella Smith

  	
   

  
	
   

  	
  Notary
  Public, State of Texas

  
	
   

  	
   

  
	
   

  	
   

  
	
  COMPANY:

  	
   

  
	
   

  	
   

  
	
  /s/ Greg Martin

  	
   

  	
   

  
	
  DSG
  TECHNOLOGY, INC. d/b/a PANABAND

  	
   

  
	
  Greg
  Martin, CEO

  	
   

  
	
   

  	
   

  
	
  STATE OF TEXAS

  	
   

  
	
  COUNTY OF DALLAS

  	
   

  
	
   

  	
   

  
	
  This
  instrument was acknowledged before me on the 15th of March, 2005,
  by Greg Martin, CEO of DSG TECHNOLOGY, INC. d/b/a PANABAND, on behalf of said
  corporation.

  
	
   

  	
   

  
	
   

  	
  /s/ Marcella Smith

  	
   

  
	
   

  	
  Notary
  Public, State of Texas

  
							

 

3

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