Document:

ex-10_30.htm

Bonds.com Group, Inc. 10-K

 

 

Exhibit 10.30

 

Execution Version

SECOND AMENDMENT TO PROMISSORY NOTE

THIS SECOND AMENDMENT TO PROMISSORY NOTE (the “Amendment”) is made effective as of March 1, 2010, by and between Bonds.com Group, Inc. (the “Maker”) and Keating Investments,
LLC (“Holder” and together with Maker, the “Parties”).  Any capitalized term used but not defined in this Amendment shall have the meaning given to such term in the Note.

WHEREAS, Maker previously delivered to Holder a Promissory Note, dated December 21, 2007, to Holder in the original principal amount of $250,000, which Promissory Note was amended by a certain amendment, dated September 17, 2008 (collectively, the “Note”);
and

WHEREAS, Holder and Maker hereby acknowledge and agree that the outstanding principal amount of the Note as of March 1, 2010 is $164,000, including $20,000 of previously outstanding accounts payable due from Maker to Holder that has been added to the principal amount of the Note as of February 1, 2010 (“Principal
Amount”), with accrued and unpaid interest thereon of $1,258.08 as of March 1, 2010.

WHEREAS, Holder and Maker would like to modify the terms of the Note as provided in this Amendment.

NOW, THEREFORE, pursuant to Section 5(e) of the Note, in consideration for the mutual promises contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.           Amendment to Section 1 of the Note.  Effective as of the date hereof, Section 1 of the Note is hereby deleted in its entirety and replaced with the following:

1.           Principal.  The Principal Amount shall be payable in lawful money of the United States in installments as set forth in this Section, with the Principal Amount outstanding from
time to time bearing interest at a rate of 10% per annum.  The Principal Amount under this Note shall be paid in four (4) equal installments of $41,000, with each installment due and payable on the following dates:  March 15, 2010, June 15, 2010, September 15, 2010 and December 15, 2010 (each a “Quarterly Payment Date”).  On each Quarterly Payment Date, Maker also agrees to pay to Holder all accrued and
unpaid interest under the Note through the Quarterly Payment Date.  All payments made under the Note shall be first applied to the accrued and unpaid interest under the Note, with the remainder of the payment being applied to the outstanding Principal Amount.

 

 

THIS AMENDMENT EVIDENCES AN EXEMPT RENEWAL TRANSACTION AND IS NOT SUBJECT TO FLORIDA DOCUMENTARY STAMP TAX OBLIGATIONS PURSUANT TO 12B – 4.052 § (12)(a), F.A.C.

  

  

  

Subject to Section 4 of the Note which provides for acceleration and a default rate of interest, the payment schedule attached to this Amendmentas Exhibit A sets forth the scheduled payments due on each Quarterly Payment Date.

2.           Amendment to Section 2 of the Note.  Effective as of the date hereof, Section 2 is hereby deleted in its entirety since
the interest payable under the Note is set forth in Section 1 hereof, as amended by this Amendment.

3.           Amendment to Section 4 of the Note.  Effective as of the date hereof, Section 4 of the Note is hereby deleted in its entirety and replaced with the following:

4.           Event of Default; Default.  The following events shall constitute an event of default (each, an “Event of Default”):  (i) the failure of the Maker to make
any payment hereunder when due; (ii) upon the sale of more than 50% of the Company's assets; (iii) upon any sale, merger, consolidation, share exchange or similar occurrence which results in the Maker’s shareholders owning, in the aggregate, less than fifty percent (50%) of the voting stock of the Maker or the surviving entity, whichever is applicable; (iv) the Maker shall file a petition in voluntary bankruptcy under the bankruptcy laws of the United States of America or any similar bankruptcy or insolvency
law, state or federal, whether now or hereafter existing; (v) the Maker admits insolvency or inability to pay its debts in, or fails to obtain within fifteen (15) days a vacation or stay of, any involuntary proceedings filed against Maker under the bankruptcy laws of the United States of America or any similar bankruptcy or insolvency law, state or federal, whether now or hereafter existing; (vi) the Maker shall be adjudicated bankrupt, or a trustee or a receiver shall be appointed for the Maker, in any involuntary
proceeding or any court shall have taken jurisdiction of the property of the Maker or the major part thereof, in any involuntary proceeding for the reorganization, dissolution, liquidation or winding up of the Maker, and such trustee or receiver shall not be discharged or such jurisdiction relinquished or vacated or stayed on appeal or otherwise stayed within fifteen (15) days; or (vii) the Maker shall make a general assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts
generally as they become due, or shall consent to the appointment of a receiver or trustee or liquidator of all its property or the major part thereof.

Upon or at any time after the occurrence and during the continuance of an Event of Default: (i) the outstanding Principal Amount and any accrued interest under the Note shall be accelerated and shall be immediately due and payable, without presentment, demand, protest or further notice by the Holder; and (ii) the outstanding
Principal Amount shall bear interest at a rate of 16% per annum (“Default Rate”).

  

  

  

Upon or at any time after the occurrence and during the continuance of an Event of Default, the Holder shall have and may exercise from time to time all of the rights and remedies available under applicable law, and all other legal and equitable rights to which the Holder may be entitled, all of which rights and remedies
shall be cumulative and shall be in addition to any other rights or remedies contained in the Note, and none of which shall be exclusive.

4.           Amendment to Section 5 of the Note.  Effective as of the date hereof, Section 5 of the Note is hereby deleted in its entirety and replaced with the following:

5.           Waiver of any Accrued Penalties.  The Holder hereby irrevocably and unconditionally waives any right Holder may have to receive or collect any additional interest as provided
under Section 4 of this Note arising out of or related to any Event of Default occurring and continuing prior to and through March 1, 2010; provided, however, that the foregoing waiver shall not be applicable to any Event of Default occurring prior to March 1, 2010 which continues after March 1, 2010.

 

The Maker shall pay all reasonable costs of collection (including reasonable attorney's fees) incurred or paid by the Holder in collecting and or enforcing this Note in the Event of Default.

5.           Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto.

6.           No Other Amendments.  Except as expressly amended, modified or supplemented hereby, the provisions of the Note, as amended, are and will remain in full force and effect and, except
as expressly provided herein, nothing in this Amendment will be construed as a waiver of any of the rights or obligations of the Parties under the Note.

7.           Conflicts in Terms.  In the event of any conflict in terms between this Amendment and the Note, the terms and conditions of this Amendment shall prevail.

8.           Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of Florida (without giving effect to any conflicts of laws principles
thereunder).

9.           Descriptive Headings.  Descriptive headings are for convenience only and will not control or affect the meaning or construction of any provisions of this Amendment.

10.         Counterparts.  This Amendment may be executed in any number of identical counterparts, each of which will constitute an original and all of which when taken together will constitute one
instrument.  An electronic or facsimile signature will constitute an original signature.

  

  

  

11.         Severability.  In the event one or more of the provisions of this Amendment should for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Amendment, and this Amendment shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

12.         Ratification.  Except as expressly modified by this Amendment, the terms and conditions of the Note shall remain in full force and effect and are hereby ratified and confirmed.

[Signature Page Follows]

  

  

  

[SIGNATURE PAGE TO SECOND AMENDMENT TO PROMISSORY NOTE]

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth above.

	  	  	
MAKER:

	  	  	  
	  	  	
Bonds.com Group, Inc.

	  	  	  
	  	  	
By:
	/s/ Christopher G. Loughlin
	  	  	
Name:
	Christopher G. Loughlin
	  	  	
Title:
	Chief Operating Officer

	  	  	
HOLDER:

	  	  	  
	  	  	
Keating Investments, LLC

	  	  	  
	  	  	
By:
	/s/ Timothy J. Keating
	  	  	
Name:
	Timothy J. Keating
	  	  	
Title:
	President

 

  

  

  

EXHIBIT A

Payment Scheduleex-10_57.htm

Bonds.com Group, Inc. 10-K

 

 

Exhibit 10.57

 

EXECUTION VERSION

Fund Holdings LLC

January 11, 2010

Bonds.com Group, Inc.

Barry Stockholders (as defined herein)

Ladies and Gentlemen:

 

Reference is made herein to that certain Stockholders Agreement, dated as of January 11, 2010 (as the same may he amended from time to time, the "Stockholders Agreement"), by and among Bonds.com Group, Inc. (the "Company"),
Fund Holdings LLC ("Fund Holdings") and the other stockholders of the Company parties thereto (collectively, the "Barry Stockholders"). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Stockholders Agreement.

 

The parties to this letter agreement (this "Letter Agreement") wish to enter into certain agreements relating to the Stockholders Agreement. Accordingly, the parties hereby agree as follows:

 

	
1.
	
From and after any Eligibility Date, if any, in the event that any Selling Stockholder purchases any Shares of Series A Preferred Stock from UBS pursuant to Section 2 of the Stockholders Agreement, upon request of such Selling Stockholder, the Company agrees to issue to such Selling Stockholder, in exchange for such shares of Series A Preferred Stock, a number of shares of Common Stock equal to the number of shares
of Series A Preferred Stock to be exchanged multiplied by 100 (subject to equitable adjustment for stock splits, combinations and the like with respect to the Series A Preferred Stock if no corresponding change is made with respect to the Common Stock); provided, however, that the foregoing obligations shall terminate (with such termination being retroactive back to the Eligibility
Date) if, after any Eligibility Date, the Company determines, in its good faith and after consultation with its independent accountants, that the foregoing option will, or is reasonably likely to, cause the reclassification of any shares of Series A Preferred Stock or Common Stock on the Company's financial statements prepared in accordance with GAAP and any applicable Securities and Exchange Commission rules or interpretations. For purposes hereof, "Eligibility
Date" means such date, if any, as the Company shall have determined, in good faith and after consultation with its independent accountants and the staff of the Securities and Exchange Commission, that the foregoing exchange obligation will not cause any Series A Preferred Stock that is classifiable as equity to be classified other than as equity on the Company's financial statements prepared in accordance with GAAP and any applicable Securities and Exchange Commission rules or interpretations. The Company
shall use commercially reasonable efforts to promptly seek guidance from its independent accountants and, as reasonably deemed appropriate by the Company, other accountants and the staff of the Securities and Exchange Commission regarding whether the foregoing exchange right will cause any

 

  

  

  

Series A Preferred Stock that is classifiable as equity to be classified other than as equity on the Company's financial statements prepared in accordance with GAAP and any applicable Securities and Exchange Commission rules or interpretations

 

	
2.
	
In the event that the Company agrees to redeem any shares of Series A Preferred Stock pursuant to Section 2 of the Stockholders Agreement in connection with a Sale by Fund Holdings and, within six (6) months following such Sale by Fund Holdings, one or more of the Barry Stockholders consummates one or more Sales in which UBS exercises its tag-along rights pursuant to Section 2 of the Stockholders Agreement, the Company
shall be obligated to redeem in connection with such Sales an aggregate a number of shares of Series A Preferred Stock equal to the number redeemed in the Sale by Fund Holdings; provided that (a) such obligation shall be in favor of the Barry Stockholders and neither UBS nor any other person or entity is an intended third party beneficiary hereof or shall have any right to enforce
the foregoing obligation, and (b) such redemption obligation shall not apply to the extent that UBS' Shares with respect to which their tag-along rights are exercised are otherwise sold by UBS as part of such tag-along. In the event that the Company agrees to redeem any shares of Series A Preferred Stock pursuant to Section 2 of the Stockholders Agreement in connection with Sales by one or more of the Barry Stockholders and, within six (6) months following such Sales by the Barry Stockholders, Fund Holdings consummates
one or more Sales in which UBS exercises its tag-along rights pursuant to Section 2 of the Stockholders Agreement, the Company shall be obligated to redeem in connection with such Sales an aggregate a number of shares of Series A Preferred Stock equal to the number redeemed in the Sales by the Barry Stockholders; provided that (a) such obligation shall be in favor of Fund Holdings and neither UBS nor any other person or entity is an intended third party beneficiary hereof or shall have any right to enforce the
foregoing obligation, and (b) such redemption obligation shall not apply to the extent that UBS' Shares with respect to which their tag-along rights are exercised are otherwise sold by UBS as part of such tag-along.

 

	
3.
	
This Letter Agreement shall be governed by the laws of the State of Delaware and may be executed in two or more counter-parts, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

[Signature Pages Follow]

  

  

  

If the Company and the Barry Stockholders are in agreement with the foregoing, please sign and return to Fund Holdings a counterpart of this Letter Agreement, whereupon the terms hereof will become a binding agreement between the parties hereto.

	  	  	
FUND HOLDINGS LLC

	  	  	  
	  	  	
By:
	/s/ Edwin L. Knetzger, III
	  	  	  	
Edwin L. Knetzger, III

	  	  	  	
Manager

Please execute where so indicated below acknowledging your understanding of, and agreement with, the terms of this Letter Agreement.

	
BONDS.COM GROUP, INC.
	  
	  	  	  
	
By:
	

/s/ Christopher G. Loughlin

	  
	  	
Authorized Signatory
	  
	  	  	  

	
JOHN J. BARRY, III

AND HOLLY A.W. BARRY
	  
	  	  	  
	/s/ John J. Barry, III	  
	
John J. Barry, III
	  

	/s/ Holly A.W. Barry	  
	
Holly A.W. Barry
	  

	
DUNCAN FAMILY, LLC
	  
	  	  	  
	
By:
	/s/ John J. Barry, III	  
	  	
John J. Barry, III, Managing Member
	  

	
By:
	/s/ Holly A.W. Barry	  
	  	
Holly A.W. Barry, Managing Member
	  

[Signature Page to Letter Agreement]

  

  

  

	
DUNCAN FAMILY REVOCABLE TRUST
	  
	  	  	  
	
By:
	/s/ John J. Barry, III	  
	  	
John J. Barry, III, Co-Trustee
	  

	
By:
	/s/ Holly A.W. Barry	  
	  	
Holly A.W. Barry, Co-Trustee
	  

	
OTIS ANGEL, LLC
	  
	  	  	  
	
By:
	/s/ John J. Barry, IV	  
	  	
John J. Barry, IV, Authorized Person
	  

 

	
SIESTA CAPITAL, LLC
	  
	  	  	  
	
By:
	/s/ John J. Barry, IV	  
	  	
John J. Barry, IV, Authorized Person
	  

	
BOND PARTNERS, LLC
	  
	  	  	  
	
By:
	/s/ John J. Barry, IV	  
	  	
John J. Barry, IV, Authorized Person
	  

	
JOHN J. BARRY IV REVOCABLE TRUST

U/A/D NOVEMBER 9, 2001
	  
	  	  	  
	
By:
	/s/ John J. Barry, IV	  
	  	
John J. Barry, IV, Trustee
	  

[Signature Page to Letter Agreement]

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