Promissory Note - Technology Solutions Co. and Timothy Cunningham
PROMISSORY NOTE
U.S. $200,000 November 19, 1999
FOR VALUE RECEIVED, the undersigned, Timothy Cunningham 950
Havenwood Lane Lake Forest, IL 60045 ("Borrower"), hereby unconditionally
promises to pay to the order of TECHNOLOGY SOLUTIONS COMPANY, a Delaware
Corporation ("Lender"), having its principal office at 205 North Michigan
Avenue, Chicago, Illinois 60601, in lawful money of the United States of America
and in immediately available funds, the principal sum of TWO HUNDRED THOUSAND
DOLLARS AND NO CENTS ($200,000) together with interest on the principal balance
from time to time outstanding at the rate of FIVE AND FIFTY SEVEN HUNDREDTHS
percent (5.57%) per annum from the date hereof until payment in full thereof in
accordance with the immediately succeeding paragraph.
The principal indebtedness evidenced hereby, together with interest
as aforesaid, shall be payable on November 19, 2002 (the "Payment Date"),
whereby Borrower shall pay to Lender the sum of TWO HUNDRED THIRTY FIVE THOUSAND
THREE HUNDRED SIXTEEN Dollars and SIX CENTS ($235,316.06) such sum comprised of
TWO HUNDRED THOUSAND Dollars ($200,000) of principal repayment and THIRTY FIVE
THOUSAND THREE HUNDRED SIXTEEN Dollars and SIX CENTS ($35,316.06) of interest
payment; provided, however, that if Borrower has been employed by Lender, or any
parent or subsidiary company of Lender, from the date hereof through and
including the Payment Date, then such principal indebtedness and interest shall
be discharged and forgiven by Lender and shall no longer be due and,
accordingly, Borrower shall have no further obligation to Lender hereunder. In
the event that Borrower terminates his employment with Lender of Borrower's own
accord, or if Borrower's employment with Lender is terminated for "Serious
Misconduct," then the full amount of outstanding principal and accrued interest
shall immediately become due and payable. In the event that Borrower's
employment with Lender terminates for any reason other than Serious Misconduct
or of Borrower's own accord, then such principal indebtedness and interest shall
be discharged and forgiven by Lender and shall no longer be due and,
accordingly, Borrower shall have no further obligation to Lender hereunder.
Borrower, however, shall in all cases be responsible for income tax on the
principal plus interest, if and when they are recognized as income, which may be
withheld by Lender. For purposes of this Promissory Note, "Serious Misconduct"
means embezzlement or misappropriation of corporate funds, other acts of
dishonesty, significant activities materially harmful to Lender's reputation,
willful refusal to perform or substantial disregard of Borrower's assigned
duties (including, but not limited to, refusal to travel or work the requested
hours), or any significant violation of any statutory or common law duty of
loyalty to Lender.
Borrower reserves the right to prepay this Note, in whole or in
part, at any time without penalty. In the event of such prepayment, the amount
so prepaid will be applied to principal due and interest will be adjusted
accordingly. Payments received by
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Lender from Borrower on this Note shall be applied first to the payment of
interest, which is due and payable and only thereafter to the outstanding
principal balance.
All payments of principal and interest under this Note shall be made
by Borrower to Lender, at Lender's principal place of business as set forth
above, or at such other place as Lender may from time to time designate in
writing.
The occurrence or existence of one or more of the following events
shall constitute an event of default ("Default") under this Note: (i) the
failure of Borrower to pay when due any principal or interest due hereunder; or
(ii) (a) Borrower shall become generally unable to pay his debts as they become
due, or (b) Borrower shall make an assignment for the benefit of creditors, or
(c) Borrower shall call a meeting of creditors for the composition of debts, or
(d) a proceeding under any bankruptcy, reorganization, arrangement of debt,
insolvency, readjustment of debt or receivership law or statute is filed by or
against Borrower, or a custodian, receiver or agent is appointed or authorized
to take charge of any of Borrower's properties, or Borrower takes any action to
authorize any of the foregoing; or (iii) Borrower shall no longer remain an
employee of Lender, or a parent or subsidiary company of Lender because of
termination due to Serious Misconduct or because of Borrower's own accord; or
(iv) there shall be entered against Borrower any judgment or judgments in an
aggregate amount in excess of $25,000, unless the amounts of such judgment or
judgments are covered by insurance and liability under such insurance has been
admitted by the issuer thereof.
In an event of Default, Lender may, by notice to Borrower, declare
all the indebtedness evidenced by this Note to be, and thereupon such
indebtedness shall become, immediately due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower; provided, however, that if the Default specified in clause
(ii) (d) in the immediately preceding paragraph occurs, the indebtedness
evidenced by this Note shall automatically become due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower.
If payment hereunder becomes due and payable on a day which is not a
"Business Day" (as defined below), the due date thereof shall be extended to the
next succeeding Business Day, and interest shall be payable thereon during such
extension at the rate specified above. ",Business Day" shall mean a day on which
banks in Chicago, Illinois are open for the transaction of banking business. In
no case or event whatsoever shall interest charged hereunder, however such
interest may be characterized or computed, exceed the highest rate permissible
under any law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. In the event that such a court
determines that Lender has received interest hereunder in excess of the highest
rate applicable hereto, Lender shall (i) apply such excess to any unpaid
principal balance due and payable by Borrower hereunder to Lender; and (ii) if
the amount of such excess exceeds the unpaid principal and other liabilities due
and payable by Borrower hereunder, Lender shall remit such excess to Borrower.
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Any notice hereunder shall be sufficiently given if in writing and
delivered in person or mailed by first class mail addressed as follows:
IF TO BORROWER:
Timothy Cunningham
954 Havenwood Lane
Lake Forest, IL 60045
IF TO LENDER:
Technology Solutions Company
205 North Michigan Avenue, Suite 1500
Chicago, Illinois 60601.
Attention: Vice President and Chief Financial Officer
Borrower and Lender may each designate additional or different
addresses by notice to the other party as provided herein.
Lender shall be under no obligation to marshal any assets in favor
of Borrower in payment of any or all of Borrower's liabilities hereunder. To the
extent that Borrower makes a payment or payments to Lender and such payment or
payments or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party under any bankruptcy law, provincial, state or
federal law, common law or equitable cause, then to the extent of such recovery,
the obligation or part hereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.
Any dispute between Leader and Borrower arising out of, connected
with, related to, or incidental to the relationship established between them in
connection with this Note, and whether arising in contract, tort, equity, or
otherwise, shall be resolved in accordance with the internal laws and not the
conflicts of law provisions of the State of Illinois.
Except as provided in the immediately succeeding paragraph, Lender
and Borrower each agree that all disputes between them arising out of, connected
with, related to, or incidental to the relationship established between them in
connection with this Note and whether arising in contract, tort, equity, or
otherwise, shall be resolved only by state or federal courts located in Cook
County, Illinois, but Lender and Borrower acknowledge that any appeals from
those courts may have to be heard by a court located outside of Cook County,
Illinois. Borrower waives any and all objections that he may have to the
location of the court considering the dispute.
Borrower agrees that Lender shall have the right to proceed against
Borrower or his property in a court in any location to enable Lender to enforce
a judgment or other court order entered in favor of Lender. Borrower agrees that
he will not assert any
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permissive counterclaims in any proceeding brought by Lender to enforce a
judgment or other court order in favor of Lender. Borrower waives any objection
that he may have to the location of the court in which Lender has commenced a
proceeding described in this paragraph.
Borrower waives personal service of any process upon him and
consents that all such service of process be made by registered mail directed to
Borrower at the address stated herein.
Borrower waives the posting of any bond otherwise required of Lender
to enforce any judgment or other court order entered in favor of Lender, or to
enforce this note by specific performance, temporary restraining order,
preliminary or permanent injunction.
Whenever possible, each provision of this Note shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited by or invalid under applicable law,
such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note. Whenever in this Note reference is made to
Lender or Borrower, such reference shall be deemed to include, as applicable, a
reference to their respective successors and assigns, and the provisions of this
Note shall be binding upon and shall inure to the benefit of said successors and
assigns. Borrower's successors and assigns shall include, without limitation, a
receiver, receiver and manager, trustee or debtor-in-possession of or for
Borrower.
By: /s/ Timothy J. Cunningham
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Timothy Cunningham
Borrower
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