Document:

ex108302.htm

EX-10.83.01

 

 

PROMISSORY NOTE

 

 

 

U.S. $28,000,000.00 

November 30, 2010

Seattle, Washington

 

FOR VALUE RECEIVED, EMERICHENAL LLC, a Delaware limited liability company, EMERICLEAR LLC, a Delaware limited liability company, and EMERIMAND LLC, a Delaware limited liability company (“Borrowers”), jointly and severally promise to pay to the order of KEYBANK NATIONAL ASSOCIATION, a national banking association (“Lender”), having an address at Key Healthcare Finance, 1301 Fifth Avenue, 23rd Floor, Mailcode: WA 31-13-2313, Seattle, WA 98101, the principal sum of TWENTY EIGHT MILLION and NO/100 DOLLARS ($28,000,000.00), or so much thereof as may be advanced from time to time, and interest from the date hereof on the balance of principal from time to time outstanding, in United States currency, at the rates and at the times hereinafter described.

 

This Note is issued by Borrowers pursuant to that certain Loan Agreement of even date herewith (the “Loan Agreement”) entered into between Lender and Borrowers and is the Note as defined in the Loan Agreement.  This Note evidences the Loan (as defined in the Loan Agreement).  Payment of this Note is governed by the Loan Agreement, the terms of which are incorporated herein by express reference as if fully set forth herein.  Capitalized terms used and not otherwise defined herein shall have the meanings given to them in the Loan Agreement.

 

	
1.  

	
Interest.  The principal amount hereof outstanding from time to time shall bear interest until paid in full at the Applicable Rate.

 

	
2.  

	
Monthly Payments.  Borrower shall make monthly payments of interest in arrears on the tenth (10) day of each calendar month in the amount of all interest accrued during the immediately preceding calendar month.  In addition, Borrower shall make payments of principal as provided in the Loan Agreement.   All payments on account of the indebtedness evidenced by this Note shall be made to Lender prior to the close of business on the day when due in lawful money of the United States and shall be first applied to late charges, costs of collection or enforcement and other similar amounts due, if any, under this Note and any of the other Loan Documents, then to interest due and payable hereunder and the remainder to principal due and payable hereunder.

 

	
3.  

	
Maturity Date.  The indebtedness evidenced hereby shall mature on the Maturity Date.  On the Maturity Date, the entire outstanding principal balance hereof, together with accrued and unpaid interest and all other sums evidenced by this Note, shall, if not sooner paid, become due and payable.

  

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4.  

	
General Provisions.

 

	
(a)  

	
In the event (i) the principal balance hereof is not paid when due whether by acceleration or upon the Maturity Date or (ii) an Event of Default exists, then the principal balance hereof shall bear interest at the Default Rate.  In addition, for any installment (exclusive of the payment due upon the Maturity Date) which is not paid within five (5) days after the due date thereof, a late charge equal to four percent (4%) of the amount of such installment shall be due and payable to the holder of this Note on demand to cover the extra expense involved in handling delinquent payments.

 

	
(b)  

	
Borrowers agree that the obligation evidenced by this Note is an exempt transaction under the Truth-in-Lending Act, 15 U.S.C. § 1601, et seq.

 

	
(c)  

	
The parties hereto intend and believe that each provision in this Note comports with all applicable local, state and federal laws and judicial decisions.  However, if any provision or provisions, or if any portion of any provision or provisions, in this Note is found by a court of law to be in violation of any applicable local, state or federal ordinance, statute, law, administrative or judicial decision, or public policy, and if such court should declare such portion, provision or provisions of this Note to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all parties hereto that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this Note shall be construed as if such illegal, invalid, unlawful, void or unenforceable portion, provision or provisions were not contained therein, and that the rights, obligations and interest of Borrowers and the holder or holders hereof under the remainder of this Note shall continue in full force and effect.  All agreements herein are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance hereof, or otherwise, shall the amount paid or agreed to be paid to the holders hereof for the use, forbearance or detention of the money to be advanced hereunder exceed the highest lawful rate permissible under applicable usury laws.  If, from any circumstances whatsoever, the fulfillment of any provision hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity and if from any circumstance the holder hereof shall ever receive as interest an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the unpaid principal balance due hereunder and not to the payment of interest.

 

	
(d)  

	
This Note and all provisions hereof shall be binding upon Borrowers and all persons claiming under or through Borrowers, and shall inure to the

  

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benefit of Lender, together with its successors and assigns, including each owner and holder from time to time of this Note.

 

	
(e)  

	
Time is of the essence as to all dates set forth herein.

 

	
(f)  

	
Borrowers agree that their liability shall not be in any manner affected by any indulgence, extension of time, renewal, waiver, or modification granted or consented to by Lender; and Borrowers consent to any indulgences and all extensions of time, renewals, waivers, or modifications that may be granted by Lender with respect to the payment or other provisions of this Note, and to any substitution, exchange or release of the collateral, or any part thereof, with or without substitution, and agrees to the addition or release of any Borrowers, endorsers, guarantors, or sureties, all whether primarily or secondarily liable, without notice to Borrowers and without affecting their liability hereunder.

 

	
(g)  

	
Borrowers hereby waive and renounce for themselves, their successors and assigns, all rights to the benefits of any statute of limitations and any moratorium, reinstatement, marshalling, forbearance, valuation, stay, extension, redemption, appraisement, or exemption and homestead laws now provided, or which may hereafter be provided, by the laws of the United States and of any state thereof against the enforcement and collection of the obligations evidenced by this Note.

 

	
(h)  

	
If this Note is placed in the hands of attorneys for collection or is collected through any legal proceedings, Borrowers promise and agree to pay, in addition to the principal, interest and other sums due and payable hereon, all reasonable out-of-pocket costs of collecting or attempting to collect this Note, including all reasonable attorneys’ fees and disbursements.

 

	
(i)  

	
All parties now or hereafter liable with respect to this Note, whether Borrowers, principal, surety, guarantor, endorsee or otherwise hereby severally waive presentment for payment, demand, notice of nonpayment or dishonor, protest and notice of protest.  No failure to accelerate the indebtedness evidenced hereby, acceptance of a past due installment following the expiration of any cure period provided by this Note, any Loan Document or applicable law, or indulgences granted from time to time shall be construed (i) as a novation of this Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver of such right of acceleration or of the right of Lender thereafter to insist upon strict compliance with the terms of this Note, or (ii) to prevent the exercise of such right of acceleration or any other right granted hereunder or by the laws of the State of Washington.  Borrowers hereby expressly waive the benefit of any statute or rule of law or equity now provided, or which may hereafter be provided, which would produce a result contrary to or in conflict with the foregoing.

  

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THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF WASHINGTON WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  Borrower’s principal offices are located within the State of Washington, and Lender is making the Loan to Borrowers within the State of Washington.  Accordingly, Borrowers agree that this Note shall be construed, enforced and otherwise governed by the laws of the State of Washington.

 

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LEND MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 

  

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Borrowers have delivered this Note as of the day and year first set forth above.

	
 

EMERICHENAL LLC, a  Delaware limited liability company

 

By:           Emeritus Corporation, aWashington corporation, its solemember

 

 

By:/s/ Eric Mendelsohn

Name: Eric Mendelsohn

Title:   Senior VP Corporate Development

 

	
EMERICLEAR LLC, a  Delaware limited liability company

 

 By:           Summerville Senior Living, Inc., aDelaware corporation, its solemember

 

 

By:/s/ Eric Mendelsohn

Name: Eric Mendelsohn

Title:   Senior VP Corporate Development

 

 

	
EMERIMAND LLC, a  Delaware limited liability company

 

By:           Summerville Senior Living, Inc., aDelaware corporation, its solemember

 

 

By: /s/ Eric Mendelsohn

Name: Eric Mendelsohn

Title:   Senior VP Corporate Development

 

	  

 

  

5exh101.htm

Exhibit 10.2

THIS CREDIT AGREEMENT is made as of the 6th day of March, 2011

BETWEEN:            SIDNEY CHAN (herein called the "Lender")

23H Block III Riviera Garden

Tsuen Wan, New Territories

Hong Kong

AND:                       ALR TECHNOLOGIES INC. (herein called the "Company")

a company duly incorporated under the laws of the State of Nevada, USA

having its registered office at 3350 Riverwood Parkway, Suite 1900,

Atlanta, Georgia.

WITNESSES THAT WHEREAS:

	
A.  

	
The Company's Board of Directors has determined that the Company should retain a national sales and marketing agent to conduct a broad-based sales and marketing campaign in the United States and Canada over the next two years in order to promote the Company's Health e-Connect compliance monitoring system (HeC);

	
B.  

	
The Company has been advised that significant up-front funding may be required and, in anticipation of such potential funding requirements, the Company has concluded that it is in its interests to secure a commitment by way of a line of credit of up to $2.5 million

	
C.  

	
The Company is seeking to secure financing for its HeC from the lender

	
D.  

	
In connection with providing line of credit arrangement for $2.5 million, the lender will be granted 20,000,000 stock options, exercisable at $0.125 for five years expiring March 5, 2016. The stock options will vest on the basis of eight stock options for each one dollar borrowed under the line of credit arrangement to meet the costs of the sales and marketing campaign.

	
E.  

	
The lender is the Chief Executive Officer and Chairman of the Board of the Company.

NOW THEREFORE IN CONSIDERATION OF the mutual covenants and agreements herein set out and the sum of One dollar paid by the Company to the Lender the parties have agreed as follows:

1.  Line of Credit

(a)  The Lender hereby agrees to cause a line of credit to be established in favour of the Company (the "Line of Credit") with a borrowing limit of two million five hundred thousand (US$2,500,000) dollars of the United States of America.

(b)  The Line of Credit may be drawn down by the Company by giving three (3) days written notice to the Lender of the amount requested and the account into which the funds are to be deposited or particulars of the account payable to be paid.

  

  

  

2.  Interest and Repayment

(a)  All amounts advanced and outstanding under the Line of Credit shall bear interest at the rate of 1% per month, simple interest (ie not compounded) from the date of advance until paid. Amounts outstanding for less than a full month will bear interest on a pro-rated basis.

(b)  Prior to demand, all amounts drawn down under the Line of Credit, and all accrued but unpaid interest thereon, may be prepaid by the Company at any time without notice or penalty, but shall become due and payable within three days of receipt of a written demand by the Lender.

(c)  From time to time the Lender may send to the Company a statement of all amounts owing under the Line of Credit, in respect of interest and principal, and such statement shall in the absence of any statement to the contrary by the Company within 30 days, be binding on the Company.

3.  Security

All amounts drawn down under the Line of Credit and all accrued but unpaid interest from time to time shall be secured by a general security agreement ("GSA") in such form as the Lender's counsel shall reasonably require, covering all the present and after acquired property of the Company, of whatever nature and kind, and the Company at the request of the Lender will at its expense register the GSA in all such jurisdictions as the Company's property is located. From time to time, on the Lender's request, the Company shall advise the Lender of all jurisdictions in which the Company's property is located.

4.  Conditions of Draw Down

(a)  No amount shall be drawn down for any purpose other than to fund the marketing and selling campaign as approved by the Board of Directors before entering a definitive final agreement with a marketing firm. The Company will, on request, provide the Lender with reasonable evidence as to the proposed use of any moneys to be advanced.

(b)  The Lender may, in their sole and unfettered discretion, decline to permit any amount to be drawn down if it appears on reasonable evidence that the Company is insolvent, threatens to cease business or the Lender's security is impaired.

5.  Notices

All notices or other communications from one party to the other ("Notices") shall be in writing and shall be delivered to the respective addresses of the parties appearing above (or as subsequently notified) or sent bye-mail (receipt requested) to such e-mail address as may be supplied by one party to the other. Notice shall be effective, if delivered when delivered and if sent bye-mail. on the date that the e-mail was received.

6.  Transitional

To the extent of the matters covered by this Agreement The First Credit Agreement shall be superseded by this Agreement and all amounts drawn down and advanced under the First Credit Agreement shall be deemed to have been advanced and secured under this Agreement.

7.  Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, USA.

  

  

  

IN WITNESS WHEREOF THE PARTIES HAVE SIGNED THIS AGREEMENT THE 10th DAY OF MARCH, 2011

	
SIDNEY CHAN

	
ALR TECHNOLOGIES INC.

	  	  	  
	  	  	  
	  	  	  
	
SIDNEY CHAN

	
Per:

	
LAWRENCE WEINSTEIN   3/10/11

	  	  	  
	  	
Name:

	
Lawrence Weinstein

	  	  	  
	  	
Title:

	
President

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