Document:

EXHIBIT 10.6

 

THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION

HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

OR APPLICABLE STATE SECURITIES LAWS AND MAY

NOT BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE DISTRIBUTED

FOR VALUE UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT

AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF

COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT,

OFFER, PLEDGE OR OTHER DISTRIBUTION FOR VALUE IS EXEMPT FROM THE REGISTRATION

AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION

HEREOF, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.

 

NORTHERN STAR FINANCIAL, INC.

CONVERTIBLE SUBORDINATED UNSECURED NOTE

 

	

  $

  	

         July     2001

  

 

 

                FOR VALUE RECEIVED, Northern

Star Financial, Inc., a Minnesota corporation (the “Company”) promises to pay

to the order of                                                                   or his successors or

assigns (the “Holder”), the principal amount of                                                     Dollars ($                            ).  Interest on the unpaid principal hereof

shall accrue from and after the date hereof and shall be paid quarterly with

the first payment due on October 1, 2001 and on the first day of each third

month thereafter at a rate of eight percent (8%) per annum (computed on the

basis of a 360-day year, 30-day month). 

All then outstanding principal amount hereof and accrued interest

thereon shall be paid in full on July    

, 2004.  This Convertible

Subordinated Unsecured Note (this “Note”) may be prepaid in whole or in part

only after fifteen (15) days written notice to the Holder of the Company’s

intention to prepay.  All payments shall

be applied first to accrued but unpaid interest and the balance to the

reduction of principal and shall be made at the address determined pursuant to

Section 7 below.  This Note has been

issued pursuant to and is subject to the terms and provisions of the

Subscription and Loan Agreement (“Agreement”), dated on or about the date

hereof, between the Company and the Holder, and this Note and the holder hereof

are entitled to all the benefits provided for in the Agreement, or which are

referred to therein.  The provisions of

the Agreement are incorporated herein by reference with the same force and

effect as if fully set forth herein.

 

                A.            Conversion of Note.

 

                                                                1.1           Right of Conversion.  The Holder of this Note shall have the right to convert all or

any part of the principal amount and accrued but unpaid interest of this Note

into fully paid and non-assessable shares of Common Stock of the Company (the

“Conversion Shares”) at a conversion rate of $10.50 per share, subject to the

adjustments provided for below (the “Conversion Price”).  This Note shall be convertible at any time

on or before it is paid in full, and the date of such conversion shall be

referred to herein as the “Conversion Date”. 

This Note may be converted only upon presentation and 

 

 

 

 

 

surrender of this Note and following written notice to the Company of

the Holder’s election to convert all or a portion hereof, in the manner

provided in Section 1.2 hereof.

 

                                                                1.2           Surrender of Note. 

In order to exercise the conversion privilege, the Holder of this Note

shall surrender this Note to the Company at its principal office and shall give

written notice to the Company that the Holder elects to convert this Note or

the portion thereof into Conversion Shares as specified in such notice.  As promptly as practicable after the

surrender of this Note, the Company shall issue and deliver to the Holder a

certificate or certificates for the number of whole shares of Common Stock

issuable upon the conversion of this Note or portion thereof in accordance with

the provisions of this Section.  In the

event that only a portion of this Note is converted, then the Company shall

issue to the Holder a new note with a principal amount representing the portion

of this Note not converted and otherwise containing the same terms contained in

this Note.

 

                                                                1.3           Adjustment of Conversion Price.  The Conversion Price shall be adjusted from

time to time such that, in case the Company shall hereafter:  (i) pay a dividend or make a distribution on

its Common Stock in shares of Common Stock, (ii) subdivide its outstanding

shares of Common Stock into a greater number of shares, (iii) combine its

outstanding shares of Common Stock into a smaller number of shares, or (iv)

issue by reclassification of its Common Stock or otherwise any shares of

capital stock of the Company, the Conversion Price in effect immediately prior

to such action shall be adjusted so that the Holder thereafter shall be

entitled to receive the number of units of such other capital stock of the

Company that the Holder would have owned immediately following such action had

this Note been converted immediately prior thereto.  An adjustment made pursuant to this Section shall become

effective immediately after the record date in the case of a dividend or

distribution and shall become effective immediately after the effective date in

the case of a subdivision, combination, reclassification or other stock

issuance.  If, as a result of an

adjustment made pursuant to this Section, the Holder thereafter shall become

entitled to receive shares of two or more classes of capital stock or shares of

Common Stock and other capital stock of the Company, the Board of Directors of

the Company shall determine the allocation of the adjusted Conversion Price

between or among shares of such classes of capital stock or shares of Common

Stock and other capital stock.  In the

event that at any time as a result of an adjustment made pursuant to this

Section, the Holder thereafter shall become entitled to receive any securities

of the Company other than shares of Common Stock represented by the Conversion

Shares, thereafter the Conversion Price of such other securities so receivable

upon conversion of this Note shall be subject to adjustment from time to time

in a manner and on terms as nearly equivalent as practicable to the provisions

with respect to Conversion Shares contained in this Section.

 

                                                                1.4           Adjustment for Mergers.  In case of any consolidation or merger to which the Company is a

party other than a merger or consolidation in which the Company is the

continuing corporation, or in case of any sale or conveyance to another

corporation of all or substantially all of the property of the Company, or in

the case of any exchange of 

 

 

2

 

 

securities with another corporation (including any exchange effected in

connection with a merger of a third corporation into the Company), there shall

be no adjustment under Section 1.3 but the Holder shall have the right

thereafter to convert this Note into the kind and amount of shares of stock and

other securities and property that it would have owned or have been entitled to

receive immediately after such consolidation, merger, statutory exchange, sale

or conveyance had this Note been converted immediately prior to the effective

date of such consolidation, merger, statutory exchange, sale or conveyance and,

in any such case, if necessary, appropriate adjustment shall be made in the

application of the provisions set forth in this Section with respect to the

rights and interest thereafter of the Holder, to the end that the provisions

set forth in this Section shall thereafter correspondingly be made applicable,

as nearly as may reasonably be, in relation to any shares of stock and other

securities and property thereafter deliverable on the conversion of this Note.

 

                                                                1.5           Reservation of Common Stock.  The Company covenants that it will at all

times reserve and keep available out of its authorized but unissued Common

Stock, such number of shares of Common Stock as shall then be deliverable upon

the conversion of this Note into Conversion Shares.

 

                                                                1.6           Definition of Common Stock.  The term “Common Stock” shall include all

shares of capital stock so designated by the Company’s Articles of

Incorporation, as in effect as of the date hereof.

 

                2.             Transferability. 

Other than pursuant to registration under federal and state securities

laws or an exemption from such registration, the availability of which the

Company shall determine in its sole discretion, neither this Note nor any

Conversion Shares may be sold, pledged, assigned or otherwise disposed of

(whether voluntarily or involuntarily). 

The Company may condition such sale, pledge, assignment or other

disposition on the receipt from the party to whom this Note is to be so

transferred or to whom Conversion Shares are to be issued or so transferred on

any representations and agreements requested by the Company in order to permit

such transfer to be made pursuant to exemptions from registration under federal

and applicable state securities laws. 

The Holder, by acceptance hereof, agrees to give written notice to the

Company before transferring this Note or transferring any Conversion Shares of

the Holder’s intention to do so, describing briefly the manner of any proposed

transfer.  Within fifteen (15) days

after receiving such written notice, the Company shall notify the Holder as to

whether such transfer may be effected.

 

                3.             Subordination; Security.  The payment of the principal of and the

interest on this Note is hereby expressly subordinated and made subject to the

prior payment in full of all indebtedness of the Company outstanding on the

date hereof or hereinafter incurred in connection with the acquisition or lease

of capital equipment or for working capital from banks, finance companies,

trust companies, insurance companies or other financial institutions, all such

indebtedness, together with renewals, extensions, substitutions, and

refinancings thereof (collectively, hereinafter referred to as the “Senior

Debt”).  The Holder acknowledges and

agrees that the Holder will not exercise any collection rights or proceed in

any way to enforce any claims the Holder has or may have against the Company

with respect to this Note unless and until the Senior Debt shall have been

indefeasibly paid in full, without the prior written consent of the holders of

the Senior Debt.  The Holder agrees to

execute such documents and take such

 

3

 

 

actions

necessary to give further effect to the foregoing subordination as are

reasonably requested by the holders of Senior Debt.  This Note is unsecured.

 

                4.             Events of Default.  Each of the following events shall be an Event of Default (“Event

of Default”) for purposes of this Note:

 

                                                                (i)            The Company defaults in the due and punctual performance

or observance of any material terms contained in this Note, and such default

continues for a period of 15 consecutive days after written notice thereof to

the Company by the Holder.

 

                                                                (ii)           The Company sells, transfers or otherwise disposes of all

or substantially all of its assets; or commences to liquidate, dissolve or

cease all or substantially all of its business activities.

 

                                                                (iii)          The Company makes an assignment for the benefit of

creditors; admits in writing its inability to pay its debts as they become due,

or files a voluntary petition in bankruptcy; is adjudicated to be bankrupt or

insolvent; files any petition or answer seeking for itself any reorganization,

arrangement, composition, readjustment, liquidation, dissolution or similar

relief under any present or future statute, law or regulation; files any answer

admitted or failing to deny the material allegations of a petition filed

against the Company for any such relief; seeks or consent to or acquiesces in

the appointment of any trustee, receiver; liquidator of the Company for all or

any substantial part of the properties of the Company; or commences to dissolve

or liquidate.

 

                5.             Remedies on Default.  Upon the occurrence of an Event of Default as described under

Section 4 hereof, the Holder shall have the option to declare the principal

amount hereof and all accrued but unpaid interest thereon to be immediately due

and payable upon written notice from the Holder to the Company, and such

amounts shall thereupon be immediately due and payable.

 

                6.             Modification and Waiver.  No purported amendment, modification or

waiver of any provision hereof shall be binding unless set forth in a written

document signed by the Company and the Holder (in the case of amendments or

modifications) or by the party to be charged thereby (in the case of

waivers).  Any waiver shall be limited

to the provisions hereof and the circumstances or events specifically made

subject thereto, and shall not be deemed a waiver of any other term hereof or

of the same circumstance or event upon any recurrence thereof.

 

                7.             Notices. 

All notices, requests, consents and other communications required or

permitted hereunder shall be in writing and shall be deemed to have been given,

when received, if personally delivered or delivered by telex, telegram, or

telecopy, or three days after depositing in the U.S. Mail for delivery by first

class mail, postage prepaid and addressed as provided below, or one day after

depositing for next-day delivery by Federal Express or similar overnight

courier, (i) if to the Holder, addressed to the Holder at its address as shown

on the books of the Company, or at such other address as the Holder may specify

by written notice to the Company, or (ii) if to the Company at 1650 Madison

Avenue, Mankato, Minnesota 56001, or at such other address as the Company may

specify by written notice to the Holder.

 

 

4

 

 

                8.             Miscellaneous. 

All the terms and provisions of this Note shall be binding upon and

inure to the benefit of and be enforceable by the respective heirs,

representatives, successors, and assigns of the Company and the Holder, whether

or not so expressed.  The laws of the

State of Minnesota shall govern the validity of this Note, the construction of

its terms, and the interpretation of the rights and duties of the Company and

the Holder.  The Company hereby waives

demand, presentment, protest, notice of protest, and notice of dishonor.  The Company shall pay all reasonable costs

and expenses incurred by the Holder in effecting the collection hereof,

including reasonable attorneys’ fees, whether or not suit is brought.

 

                IN WITNESS WHEREOF, the Company

has caused this Note to be executed by its duly authorized officer as of the

date first written above.

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  NORTHERN

  STAR FINANCIAL, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Thomas

  Stienessen

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Its:  Chief Executive Officer

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
											

 

 

5

 

DATES

AND PRINCIPAL AMOUNTS OF NOTES

HELD

BY REGISTRANT’S DIRECTORS

 

 

 

 

 

 

	

  Director

  	

   

  	

  Date of

  Note

  	

   

  	

  Amount

  	

   

  	

  Due Date

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Dean M. Doyscher

  	

   

  	

  August

  7, 2001

  	

   

  	

  $

  	

  100,000

  	

   

  	

  August

  7, 2004

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  James H. Illies

  	

   

  	

  August

  6, 2001

  	

   

  	

  $

  	

  100,000

  	

   

  	

  August

  6, 2004

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Michael P. Reynolds

  	

   

  	

  July

  30, 2001

  	

   

  	

  $

  	

  200,000

  	

   

  	

  July

  30, 2004

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Thomas J. Reynolds

  	

   

  	

  August

  1, 2001

  	

   

  	

  $

  	

  200,000

  	

   

  	

  August

  1, 2004

  

 

 

 

6EXHIBIT 10.7

 

THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION

HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

OR APPLICABLE STATE SECURITIES LAWS AND MAY

NOT BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE DISTRIBUTED

FOR VALUE UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT

AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF

COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT,

OFFER, PLEDGE OR OTHER DISTRIBUTION FOR VALUE IS EXEMPT FROM THE REGISTRATION

AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION

HEREOF, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.

 

NORTHERN STAR FINANCIAL, INC.

CONVERTIBLE SUBORDINATED UNSECURED NOTE

 

	

  $

  	

  June 28, 2002

  

 

                FOR VALUE RECEIVED, Northern

Star Financial, Inc., a Minnesota corporation (the “Company”) promises to pay

to the order of                             

                or his successors

or assigns (the “Holder”), the principal amount of                                                 Dollars ($                          ).  Interest on the unpaid principal hereof

shall accrue from and after the date hereof and shall be paid quarterly with

the first payment due on October 1, 2001 and on the first day of each third

month thereafter at a rate of seven percent (7%) per annum (computed on the

basis of a 360-day year, 30-day month). 

All then outstanding principal amount hereof and accrued interest

thereon shall be paid in full on June 28, 2005.  This Convertible Subordinated Unsecured Note (this “Note”) may be

prepaid in whole or in part only after fifteen (15) days written notice to the

Holder of the Company’s intention to prepay. 

All payments shall be applied first to accrued but unpaid interest and

the balance to the reduction of principal and shall be made at the address

determined pursuant to Section 7 below. 

This Note has been issued pursuant to and is subject to the terms and

provisions of the Subscription and Loan Agreement (“Agreement”), dated on or

about the date hereof, between the Company and the Holder, and this Note and

the holder hereof are entitled to all the benefits provided for in the Agreement,

or which are referred to therein.  The

provisions of the Agreement are incorporated herein by reference with the same

force and effect as if fully set forth herein.

 

                A.            Conversion of Note.

 

                                                                1.1           Right of Conversion.  The Holder of this Note shall have the right to convert all or

any part of the principal amount and accrued but unpaid interest of this Note

into fully paid and non-assessable shares of Common Stock of the Company (the

“Conversion Shares”) at a conversion rate of $9.00 per share, subject to the

adjustments provided for below (the “Conversion Price”).  This Note shall be convertible at any time

on or before it is paid in full, and the date of such conversion shall be

referred to herein as 

 

 

 

 

 

the “Conversion Date”.  This

Note may be converted only upon presentation and surrender of this Note and

following written notice to the Company of the Holder’s election to convert all

or a portion hereof, in the manner provided in Section 1.2 hereof.

 

                                                                1.2           Surrender of Note. 

In order to exercise the conversion privilege, the Holder of this Note

shall surrender this Note to the Company at its principal office and shall give

written notice to the Company that the Holder elects to convert this Note or

the portion thereof into Conversion Shares as specified in such notice.  As promptly as practicable after the

surrender of this Note, the Company shall issue and deliver to the Holder a

certificate or certificates for the number of whole shares of Common Stock issuable

upon the conversion of this Note or portion thereof in accordance with the

provisions of this Section.  In the

event that only a portion of this Note is converted, then the Company shall

issue to the Holder a new note with a principal amount representing the portion

of this Note not converted and otherwise containing the same terms contained in

this Note.

 

                                                                1.3           Adjustment of Conversion Price.  The Conversion Price shall be adjusted from

time to time such that, in case the Company shall hereafter:  (i) pay a dividend or make a distribution on

its Common Stock in shares of Common Stock, (ii) subdivide its outstanding

shares of Common Stock into a greater number of shares, (iii) combine its

outstanding shares of Common Stock into a smaller number of shares, or (iv)

issue by reclassification of its Common Stock or otherwise any shares of

capital stock of the Company, the Conversion Price in effect immediately prior

to such action shall be adjusted so that the Holder thereafter shall be

entitled to receive the number of units of such other capital stock of the

Company that the Holder would have owned immediately following such action had

this Note been converted immediately prior thereto.  An adjustment made pursuant to this Section shall become

effective immediately after the record date in the case of a dividend or

distribution and shall become effective immediately after the effective date in

the case of a subdivision, combination, reclassification or other stock

issuance.  If, as a result of an

adjustment made pursuant to this Section, the Holder thereafter shall become

entitled to receive shares of two or more classes of capital stock or shares of

Common Stock and other capital stock of the Company, the Board of Directors of

the Company shall determine the allocation of the adjusted Conversion Price

between or among shares of such classes of capital stock or shares of Common

Stock and other capital stock.  In the

event that at any time as a result of an adjustment made pursuant to this

Section, the Holder thereafter shall become entitled to receive any securities

of the Company other than shares of Common Stock represented by the Conversion

Shares, thereafter the Conversion Price of such other securities so receivable

upon conversion of this Note shall be subject to adjustment from time to time in

a manner and on terms as nearly equivalent as practicable to the provisions

with respect to Conversion Shares contained in this Section.

 

                                                                1.4           Adjustment for Mergers.  In case of any consolidation or merger to which the Company is a

party other than a merger or consolidation in which the Company is the 

 

 

2

 

 

continuing corporation, or in case of any sale or conveyance to another

corporation of all or substantially all of the property of the Company, or in the

case of any exchange of securities with another corporation (including any

exchange effected in connection with a merger of a third corporation into the

Company), there shall be no adjustment under Section 1.3 but the Holder shall

have the right thereafter to convert this Note into the kind and amount of

shares of stock and other securities and property that it would have owned or

have been entitled to receive immediately after such consolidation, merger,

statutory exchange, sale or conveyance had this Note been converted immediately

prior to the effective date of such consolidation, merger, statutory exchange,

sale or conveyance and, in any such case, if necessary, appropriate adjustment

shall be made in the application of the provisions set forth in this Section

with respect to the rights and interest thereafter of the Holder, to the end

that the provisions set forth in this Section shall thereafter correspondingly

be made applicable, as nearly as may reasonably be, in relation to any shares

of stock and other securities and property thereafter deliverable on the

conversion of this Note.

 

                                                                1.5           Reservation of Common Stock.  The Company covenants that it will at all

times reserve and keep available out of its authorized but unissued Common

Stock, such number of shares of Common Stock as shall then be deliverable upon

the conversion of this Note into Conversion Shares.

 

                                                                1.6           Definition of Common Stock.  The term “Common Stock” shall include all

shares of capital stock so designated by the Company’s Articles of

Incorporation, as in effect as of the date hereof.

 

                2.             Transferability. 

Other than pursuant to registration under federal and state securities

laws or an exemption from such registration, the availability of which the

Company shall determine in its sole discretion, neither this Note nor any

Conversion Shares may be sold, pledged, assigned or otherwise disposed of

(whether voluntarily or involuntarily). 

The Company may condition such sale, pledge, assignment or other

disposition on the receipt from the party to whom this Note is to be so

transferred or to whom Conversion Shares are to be issued or so transferred on

any representations and agreements requested by the Company in order to permit

such transfer to be made pursuant to exemptions from registration under federal

and applicable state securities laws. 

The Holder, by acceptance hereof, agrees to give written notice to the

Company before transferring this Note or transferring any Conversion Shares of

the Holder’s intention to do so, describing briefly the manner of any proposed

transfer.  Within fifteen (15) days

after receiving such written notice, the Company shall notify the Holder as to

whether such transfer may be effected.

 

                3.             Subordination; Security.  The payment of the principal of and the

interest on this Note is hereby expressly subordinated and made subject to the

prior payment in full of all indebtedness of the Company outstanding on the

date hereof or hereinafter incurred in connection with the acquisition or lease

of capital equipment or for working capital from banks, finance companies,

trust companies, insurance companies or other financial institutions, all such

indebtedness, together with renewals, extensions, substitutions, and

refinancings thereof (collectively, hereinafter referred to as the “Senior

Debt”).  The Holder acknowledges and

agrees that the Holder will not exercise any collection rights or proceed in

any way to enforce any 

 

 

3

 

 

claims

the Holder has or may have against the Company with respect to this Note unless

and until the Senior Debt shall have been indefeasibly paid in full, without

the prior written consent of the holders of the Senior Debt.  The Holder agrees to execute such documents

and take such actions necessary to give further effect to the foregoing

subordination as are reasonably requested by the holders of Senior Debt.  This Note is unsecured.

 

                4.             Events of Default.  Each of the following events shall be an Event of Default (“Event

of Default”) for purposes of this Note:

 

                                                                (i)            The Company defaults in the due and punctual performance

or observance of any material terms contained in this Note, and such default

continues for a period of 15 consecutive days after written notice thereof to

the Company by the Holder.

 

                                                                (ii)           The Company sells, transfers or otherwise disposes of all

or substantially all of its assets; or commences to liquidate, dissolve or

cease all or substantially all of its business activities.

 

                                                                (iii)          The Company makes an assignment for the benefit of

creditors; admits in writing its inability to pay its debts as they become due,

or files a voluntary petition in bankruptcy; is adjudicated to be bankrupt or

insolvent; files any petition or answer seeking for itself any reorganization,

arrangement, composition, readjustment, liquidation, dissolution or similar

relief under any present or future statute, law or regulation; files any answer

admitted or failing to deny the material allegations of a petition filed

against the Company for any such relief; seeks or consent to or acquiesces in

the appointment of any trustee, receiver; liquidator of the Company for all or

any substantial part of the properties of the Company; or commences to dissolve

or liquidate.

 

                5.             Remedies on Default.  Upon the occurrence of an Event of Default as described under

Section 4 hereof, the Holder shall have the option to declare the principal

amount hereof and all accrued but unpaid interest thereon to be immediately due

and payable upon written notice from the Holder to the Company, and such

amounts shall thereupon be immediately due and payable.

 

                6.             Modification and Waiver.  No purported amendment, modification or

waiver of any provision hereof shall be binding unless set forth in a written

document signed by the Company and the Holder (in the case of amendments or

modifications) or by the party to be charged thereby (in the case of

waivers).  Any waiver shall be limited

to the provisions hereof and the circumstances or events specifically made

subject thereto, and shall not be deemed a waiver of any other term hereof or

of the same circumstance or event upon any recurrence thereof.

 

                7.             Notices. 

All notices, requests, consents and other communications required or

permitted hereunder shall be in writing and shall be deemed to have been given,

when received, if personally delivered or delivered by telex, telegram, or

telecopy, or three days after depositing in the U.S. Mail for delivery by first

class mail, postage prepaid and addressed as provided below, or one day after

depositing for next-day delivery by Federal Express or similar overnight

courier, (i) if to the Holder, addressed to the Holder at its address as shown

on the books of the 

 

 

4

 

 

Company,

or at such other address as the Holder may specify by written notice to the

Company, or (ii) if to the Company at 1650 Madison Avenue, Mankato, Minnesota

56001, or at such other address as the Company may specify by written notice to

the Holder.

 

                8.             Miscellaneous. 

All the terms and provisions of this Note shall be binding upon and

inure to the benefit of and be enforceable by the respective heirs,

representatives, successors, and assigns of the Company and the Holder, whether

or not so expressed.  The laws of the

State of Minnesota shall govern the validity of this Note, the construction of

its terms, and the interpretation of the rights and duties of the Company and

the Holder.  The Company hereby waives

demand, presentment, protest, notice of protest, and notice of dishonor.  The Company shall pay all reasonable costs

and expenses incurred by the Holder in effecting the collection hereof,

including reasonable attorneys’ fees, whether or not suit is brought.

 

                IN WITNESS WHEREOF, the Company

has caused this Note to be executed by its duly authorized officer as of the

date first written above.

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  NORTHERN

  STAR FINANCIAL, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Thomas

  Stienessen

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Its:

  	

  Chief

  Executive Officer

  
											

 

 

5

 

 

DATES

AND PRINCIPAL AMOUNTS OF NOTES

HELD

BY REGISTRANT’S DIRECTORS

 

 

 

	

  Director

  	

   

  	

  Date of

  Note

  	

   

  	

  Amount

  	

   

  	

  Due Date

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Steven A. Loehr

  	

   

  	

  June

  28, 2002

  	

   

  	

  $

  	

  50,000

  	

   

  	

  June

  28, 2005

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Robert Dittrich

  	

   

  	

  June

  28, 2002

  	

   

  	

  $

  	

  150,000

  	

   

  	

  June

  28, 2005

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Thomas J. Reynolds

  	

   

  	

  June

  28, 2002

  	

   

  	

  $

  	

  100,000

  	

   

  	

  June

  28, 2005

  

 

 

 

6

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