Document:

Promissory Note

Exhibit

10.35

 

SECURED PROMISSORY NOTE

 

	

  $700,000.00

  	

   

  	

  SAN DIEGO,

  CALIFORNIA

  	

   

  	

  May 31,2002

  

 

Altris Software, Inc., a

California corporation (“Maker”), promises to pay on demand to Spescom LTD, a

United Kingdom corporation, or order (“Holder”), the principal sum of the

amounts set forth in the upper left-hand corner of this Secured Promissory Note

(this “Note”), plus interest at the rate of ten percent (10.0%) per annum,

payable as more fully set forth below:

 

1.             Payments. 

All unpaid principal and accrued interest under this Note shall be

immediately due and payable on demand by Holder.

 

2.             Manner of Payments.  All payments by Maker under this Note shall be (a) made in lawful

money of the United States of America without set off, deduction or

counterclaim of any kind whatsoever, (b) credited first to amounts for late

charges, if any, second to amounts for Holder’s costs of enforcing this Note,

if any, third to any accrued interest under this Note and finally to the

principal balance under this Note, and (c) deemed paid by Maker upon their

actual receipt by Holder.

 

3.             Security. 

This Note is secured by a security interest over all of the assets of

Debtor pursuant to a Security Agreement (the “Security Agreement”), including

applicable financing statements, and a Pledge Agreement (the “Pledge

Agreement”), all of even date herewith.

 

4.             Late Charge. 

If any amount of interest and/or principal under this Note is not

received by Holder within fifteen (15) days after its due date, then, without

any requirement for notice to Maker, Maker shall immediately pay to Holder an

additional sum of five percent (5%) of such overdue amount as a late

charge.  Such late charge is fair and

reasonable based upon the facts and circumstances existing as of the date of

this Note.  Acceptance of such late

charge by Holder shall not constitute a waiver of Maker’s default with respect

to such overdue amount, nor prevent Holder from exercising any of the other

rights and remedies available to Holder under this Note, the Security Agreement

or the Pledge Agreement.

 

5.             Default Interest.  If any payment under this Note is not received by Holder within

fifteen (15) days after its due date, then, without any requirement for notice

to Maker, the rate of interest on such overdue amount shall increase to the

lesser of fourteen percent (14%) or the maximum legally permissible rate,

whichever is the lesser, until such late payment is made.  Such default interest represents a fair and

reasonable estimate of the costs that Holder will incur by reason of any late

payment by Maker.  Acceptance of such

default interest by Holder shall not constitute a waiver of Maker’s default

with respect to such overdue amount, nor prevent Holder from exercising any of

the other rights and remedies available to Holder under this Note, the Security

Agreement or the Pledge Agreement.

 

 

6.             Prepayment. 

This Note may be prepaid in whole or in part at any time, provided that

amounts prepaid shall be credited first to amounts for late charges, if any,

second to amounts for Holder’s costs of enforcing this Note, if any, third to

any accrued interest under this Note and finally to the principal balance under

this Note.

 

7.             Note Waivers. 

Maker waives presentment, demand, protest, notice of demand and

dishonor.

 

8.             Governing Law. 

This Note is governed by and construed in accordance with the laws of

the State of California, irrespective of California’s choice-of-law principles.

 

9.             Further Assurances.  Each party to this Note shall execute and deliver all instruments

and documents and take all actions as may be reasonably required or appropriate

to carry out the purposes of this Note.

 

10.           Venue and Jurisdiction. All actions and proceedings

arising in connection with this Note must be tried and litigated exclusively in

the State and Federal courts located in San Diego County, California, which

courts have personal jurisdiction and venue over each of the parties to this

Note for the purpose of adjudicating all matters arising out of or related to

this Note.  Each party authorizes and accepts

service of process sufficient for personal jurisdiction in any action against

it as contemplated by this paragraph by registered or certified mail, return

receipt requested, postage prepaid, to its address for the giving of notices

set forth in this Note.

 

11.           Time of Essence. 

Time and strict and punctual performance are of the essence with respect

to each provision of this Note.

 

12.           Attorneys’ Fees. The prevailing party in any

litigation, arbitration, mediation, bankruptcy, insolvency or other proceeding

(“Proceeding”) relating to the enforcement or interpretation of this Note may

recover from the unsuccessful party all costs, expenses, and actual attorney’s

fees (including expert witness and other consultants’ fees and costs) relating

to or arising out of (a) the Proceeding (whether or not the Proceeding proceeds

to judgment), and (b) any post-judgment or post-award proceeding including,

without limitation, one to enforce or collect any judgment or award resulting

from the Proceeding.  All such judgments

and awards shall contain a specific provision for the recovery of all such

subsequently incurred costs, expenses, and actual attorney’s fees.

 

13.           Partial Invalidity.  Each provision of this Note is valid and enforceable to the

fullest extent permitted by law.  If any

provision of this Note (or the application of such provision to any person or

circumstance) is or becomes invalid or unenforceable, the remainder of this

Note, and the application of such provision to persons or circumstances other

than those as to which it is held invalid or unenforceable, are not affected by

such invalidity or unenforceability.

 

14.           Waiver.  Any

waiver of a default or provision under this Note must be in writing.  No such waiver constitutes a waiver of any

other default or provision

 

 

concerning the same or any other provision of

this Note.  No delay or omission by a

party in the exercise of any of its rights or remedies constitutes a waiver of

(or otherwise impairs) such right or remedy. 

A consent to or approval of an act does not waive or render unnecessary

the consent to or approval of any other or subsequent act.

 

15.           Interest Limitation.  It is not intended by any provision of this Note to charge

interest at a rate in excess of the maximum rate of interest permitted to be

charged to Maker under applicable law on a cumulative basis over the life of

the loan evidenced by this Note (the “Loan”). 

If by mistake or error, interest in excess of such maximum rate shall be

paid for any period during the term of the Loan, the excess amount shall, if

permitted by applicable law, be retained by Holder as additional cash  collateral for the Loan to be held without

interest or trust and commingled with other assets of Holder or, if not permitted

to be so held by Holder, shall be refunded to Maker.  If for any period during the term of the Loan, Holder is unable,

because of a limitation on the rate of interest permitted to be charged to

Maker under applicable law, to collect all of the interest and premium provided

for in this Note, such interest or premium (“Interest Shortage”) shall, if

permitted by applicable law, be added to the interest earned or to be earned

for prior or subsequent periods during the term of the Loan so that, to the

extent permitted by applicable law on a cumulative basis over the life of the

Loan, Holder may collect all of the interest and premium provided for in this

Note, the same to be accomplished in the following manner, or otherwise as

permitted by applicable law:  (1) if

Holder were permitted by applicable law to charge interest to Maker in such

prior periods in excess of the amount of interest and premium actually charged

during such prior periods, then the interest due on the Loan for such prior

periods shall automatically be increased by the amount of such Interest

Shortage, but not in excess of the maximum interest permitted to be charged to

Maker during such prior periods, and such increased interest for such prior

periods shall be immediately due and payable upon demand; and (2) if Holder

shall have collected all interest permitted by applicable law to be charged to

Maker in such prior periods, and if Holder is thereafter permitted by

applicable law to charge interest to Maker in such subsequent periods in excess

of the amount of interest and premium actually charged during such subsequent

periods, the interest due on the Loan for such subsequent periods shall

automatically be increased by the amount of such Interest Shortage, but not in

excess of the maximum interest permitted to be charged to Maker during such

subsequent period, and such increased interest for such subsequent periods

shall be due and payable at the end of each such subsequent period upon demand.

 

16.           Notices. 

All notices or other communications required or permitted to be given to

a party to this Agreement shall be in writing and shall be personally

delivered, sent by certified mail, postage prepaid, return receipt requested,

or sent by an overnight express courier service that provides written

confirmation of delivery, to such party at the following respective address:

 

	

  Holder:

  	

  Spescom

  LTD

  
	

   

  	

  P.O.

  Box 288

  
	

   

  	

  Halfway

  House 1685 Midrand

  
	

   

  	

  South

  Africa

  
	

   

  	

  Attention:  Hilton Isaacman

  

 

 

 

	

  with

  a copy to:

  	

  Solomon,

  Ward, Seidenwurm & Smith, LLP

  
	

   

  	

  401

  B Street, Suite 1200

  
	

   

  	

  San

  Diego, CA 92101

  
	

   

  	

  Attention:

  Norman L. Smith

  
	

   

  	

   

  
	

  Maker:

  	

  Altris

  Software, Inc.

  
	

   

  	

  9339

  Carroll Park Drive

  
	

   

  	

  San

  Diego, CA 92121

  
	

   

  	

  Attention:  John Low

  

 

 

Each such notice or other communication shall be deemed given,

delivered and received upon its actual receipt, except that if it is sent by

mail in accordance with this paragraph, then it shall be deemed given,

delivered and received three days after the date such notice or other

communication is deposited with the United States Postal Service in accordance

with this paragraph.  Any party to this

Note may give a notice of a change of its address to the other party to this

Note.

 

17.           Drafting

Ambiguities.Each party to this Note has reviewed and revised this

Note.  Each party to this Note has had

the opportunity to have such party’s legal counsel review and revise this

Note.  Altris acknowledges that this

Note has been prepared by Solomon Ward Seidenwurm & Smith, LLP (“SWSS”)

which represents only Spescom Ltd., a United Kingdom corporation, with respect

to this Note and all related matters, that it is not being represented by SWSS

in relation to this Note and related matters and that it has been advised to

retain its own legal counsel. The rule of construction that ambiguities are to

be resolved against the drafting party or in favor of the party receiving a

particular benefit under an agreement may not be employed in the interpretation

of this Note or of any amendments to this Note.

 

	

   

  	

  ALTRIS

  SOFTWARE, INC.

  
	

   

  	

  a

  California corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/John W. Low

  	

   

  
	

   

  	

   

  	

   

  	

  John W. Low

  
	

   

  	

   

  	

   

  	

  Chief Financial OfficerExhibit

10.28

 

AGREEMENT TO RESOLVE

CERTAIN TENANT IMPROVEMENT

DISPUTES WITH RESPECT

TO B-4, B-5 & B-6

 

This Agreement

is entered into and dated for reference purposes as of January 8, 2002, by and

between Pacific Shores Development, LLC (“PSD”) and BroadVision, Inc. (“BroadVision”)

and is as follows:

 

1.             Disputes.  This is an agreement (“Agreement”) to confirm the

resolution of all disputes regarding (i) the characterization of various

components of construction at B-4, B-5 and B-6 as being either Shell or Tenant

Improvement items, (ii) the appropriate cost or expense of those items, (iii)

any remaining obligations of BroadVision to pay for the construction of

additional Tenant Improvements in B-4 and B-5, and (iv) the appropriate

allocation of all remaining amounts of the B-4 and B-5 Tenant Improvement

deposits to the cost of Tenant Improvements (collectively the “Disputes”).

 

2.             Release and Indemnity.  Each of the undersigned, on behalf of

itself, its respective shareholders, partners, officers, directors, constituent

members, lenders, associates, affiliates, attorneys, trustees, trusts as to

which it serves as trustee, employees, agents, and all others claiming through

same and each of their successors and assigns (collectively, disjunctively, and

conjunctively its “Affiliates”) hereby generally releases and

forever discharges the other and its Affiliates from and against any and all

claims, demands, charges, costs, liabilities, expenses (including reasonable

attorneys’ fees), accounts, actions or causes of action of any nature, whether

absolute or contingent, tort or contract, legal or equitable, common law or

statutory, now or hereafter occurring, and no matter by whom alleged or

asserted, and including, without limitation, both known and unknown liabilities,

claims and causes of action arising out of, related to or in connection with

the Disputes.  Each party agrees to

indemnify and hold harmless the other party and its Affiliates as to any of the

Disputes released by such party which is brought against such other party

and/or its Affiliates.

 

3.             Application to Tenant

Improvement Deposits.  As

consideration herefor, all of the money deposited by BroadVision into the

Tenant Improvement accounts established under the B-4 and B-5 Leases shall be

applied by Pacific Shores Development, LLC as payment for or reimbursement of

the cost and expense of various construction components and shall be allocated

among Tenant Improvement costs in certain amounts set forth below (and

otherwise in its sole discretion), regardless of whether such costs are

expressly described in the Leases and regardless of any prior disputes between

the parties with respect to such costs and expense, including, without

limitation, the cost and expense of B-6 windscreens ($150,000) and B-4, B-5 and

B-6 winterization ($100,000), overtime ($100,000), general conditions and

temporary utilities ($100,000), man lift and operator ($80,000), temporary

stairs ($40,000) and certain poured in place concrete slab floors ($1,340,101)

as well as the cost and expense of certain Tenant Improvements yet to be

constructed in B-4 and/or B-5, including, without limitation, for construction

components necessary or appropriate to convert either or both B-4 and B-5 to

multi-tenant use.

 

4.             Obligations Satisfied.  As further consideration for this Agreement,

BroadVision is deemed to have complied with all of its obligations to pay for

the design and construction of Tenant Improvements under the B-4, B-5 and B-6

Leases.

 

5.             Lender’s Consent; Board

Authorization.  Lessee’s and

Lessor’s obligations hereunder are subject to the receipt (i) by Lessee, no

later than one hundred fifty (150) days after the date hereof, of the Lender’s

Consent, as hereinafter defined, and (ii) by Lessor, no later than one hundred

fifty (150) days after the date hereof, of a certified resolution of Lessee’s

Board of Directors authorizing the execution of this Agreement.  Lessor hereby agrees to use diligent efforts

to obtain the Lender’s Consent by such date; however, if Lessee does not

receive the Lender’s Consent by such date, this Agreement shall, at either

Lessor’s or Lessee’s option, thereupon be deemed terminated and of no further

force or effect, and neither party shall have any further rights, obligations,

or liabilities hereunder.  As used herein,

the term “Lender’s

Consent” means a written consent to this Agreement (including,

without limitation, Section 2 hereof), executed by the holder of the promissory

note secured by that certain Deed of Trust encumbering the fee interest in the

real property of which the Premises are a part) recorded on March 31, 2001 in

the Official Records of San Mateo, California, as Document No 2000-037860.

 

 

 

6.             Leases Ratified.  The B-4, B-5 and B-6 Leases are hereby

ratified and confirmed as being in full force and effect.

 

	

   

  	

  Pacific

  Shores Development, LLC,

  
	

   

  	

  a Delaware

  limited liability company

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  Technology

  Land, LLC,

  
	

   

  	

   

  	

  a California

  limited liability company

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Jay Paul

  	

   

  
	

   

  	

   

  	

  Jay Paul,

  Sole Member

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  BroadVision, Inc.,

  
	

   

  	

  a Delaware

  corporation,

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Fran

  Barton

  	

   

  
	

   

  	

   

  	

  Fran Barton

  	

   

  
	

   

  	

   

  	

  (Type or

  Print Name)

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

  EVP &

  CFO

  	

   

  
					

 

2

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