ALLONGE TO THIRD AMENDED AND RESTATED SENIORSUBORDINATED PROMISSORY NOTE

EX-10.97 3 a09-1845_1ex10d97.htm EX-10.97

Exhibit 10.97

 

Execution Version

 

ALLONGE TO THIRD AMENDED AND RESTATED SENIOR SUBORDINATED
PROMISSORY NOTE

 

THIS ALLONGE TO THIRD AMENDED AND RESTATED SENIOR SUBORDINATED PROMISSORY NOTE (this “Allonge”) is made and entered into as of the 30th day of March, 2009, by and between ISI Security Group, Inc., a Delaware corporation formerly known as ISI Detention Contracting Group, Inc. and d/b/a “Argyle Security USA” (successor-by-merger to ISI Security Group, Inc., an unrelated entity) (the “Borrower”), and WILLIAM BLAIR MEZZANINE CAPITAL FUND III, L.P., a Delaware limited partnership (the “Holder”).

 

WHEREAS, the Borrower executed in favor of the Holder that certain Third Amended and Restated Senior Subordinated Promissory Note, dated as of January 8, 2009, in the original principal amount of Five Million Nine Hundred Fifty-One Thousand Six Hundred Nine and No/100 Dollars ($5,951,609.00), a copy of which is attached as Annex 1 hereto and incorporated herein by this reference (the “Note”); and

 

WHEREAS, in order to amend the payment schedule under the Note, the parties have agreed to execute this Allonge.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the undersigned agree as follows:

 

1.                    The Holder hereby agrees to extend the payment dates due under the Note from March 31, 2009 to April 1, 2009 and June 30, 2009 to July 1, 2009, respectively.

 

2.                    It is understood and agreed that Exhibit A attached to this Allonge is substituted in place of Exhibit A to the Note.

 

3.                    Except as amended or revised by this Allonge, the terms of the Note remain in full force and effect as of the date hereof.  In the event the terms of the Note should conflict with this Allonge, the terms of this Allonge shall control.

 

4.                    The Borrower hereby certifies, represents and warrants to the Holder that all certifications, representations and warranties made by the Borrower to the Holder in or in connection with this Allonge were true in all material respects as of the date of this Allonge and are true in all material respects on and as of the date hereof as if made on and as of the date hereof.

 

5.                    The obligations evidenced hereby are subordinate in the manner and to the extent set forth in that certain Subordination Agreement, dated as of October 3, 2008, among, without limitation, the Holder, the Borrower, and the PrivateBank and Trust Company (the “Senior Lender”), to the obligations (including interest) owed by Borrower to the holders of all of the notes issued pursuant to that certain Loan and Security Agreement, dated as of October 3, 2008, by and between the Borrower and the Senior Lender, as amended by that certain First Amendment to Loan and Security Agreement dated as of January 8, 2009 (the “Loan and Security Agreement”), as such Loan and Security Agreement may hereafter be supplemented, modified, restated or amended from time to

 



 

time; and each holder hereof, by its acceptance hereof, shall be bound by the provisions of the Subordination Agreement.

 

6.                    This Allonge shall be governed by and construed in accordance with the laws of the State of Illinois.

 

7.                    A facsimile copy of this Allonge shall be deemed an original for all purposes.

 

[SIGNATURE PAGE FOLLOWS]

 



 

Signature Page to Allonge to
Third Amended and Restated Senior Subordinated Promissory Note

IN WITNESS WHEREOF, the parties have caused this Allonge to Third Amended and Restated Senior Subordinated Promissory Note has been duly executed by their authorized officers as of the date first written above.

 

 

BORROWER:

 

 

 

ISI SECURITY GROUP, INC., a
Delaware corporation, formerly known as
ISI Detention Contracting Group, Inc.

 

 

 

 

 

By:

/s/ Donald F. Neville

 

Name: 

Donald F. Neville

 

Its:

CFO

 

ACCEPTED AND AGREED TO AS OF
THE DATE FIRST WRITTEN ABOVE:

 

 

 

WILLIAM BLAIR MEZZANINE
CAPITAL FUND III, L.P.

 

 

 

 

By:

William Blair Mezzanine Capital

 

 

Partners III, L.L.C., its General
Partner

 

 

 

 

 

 

 

By:

/s/ Marc Walfish

 

Name: 

Marc Walfish

 

Its:

Managing Director

 

 



 

ANNEX 1

 

[INTENTIONALLY OMITTED]

 



 

EXHIBIT A

 



 

EXHIBIT A TO THIRD AMENDED AND RESTATED SENIOR SUBORDINATED PROMISSORY NOTE

 

WILLIAM BLAIR MEZZANINE CAPITAL FUND III, L.P.

ISI Detention Contracting Group

$5,951,609 Senior Subordinated Note

 

Assumptions:

 

 

 

 

 

 

 

 

 

Note

 

 

 

5,951,609

 

 

 

 

 

Interest Rate

 

 

 

11.580

%

 

 

 

 

Current Interest Rate

 

 

 

11.580

%

 

 

 

 

PIK Interest

 

 

 

0.0

%

 

 

 

 

Days in Year Convention

 

 

360

 

 

 

 

 

Closing Date

 

 

 

7/31/2007

 

 

 

 

 

Maturity Date

 

 

 

extended until 1/31/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Principal

 

Current Interest

 

Ending Principal

 

Date

 

Days

 

Amount

 

Due

 

Amount

 

7/31/2007

 

 

 

5,951,609.00

 

 

 

 

 

9/30/2007

 

62

 

5,951,609.00

 

118,694.92

 

5,951,609.00

 

12/31/2007

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

3/31/2008

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

6/30/2008

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2008

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

12/31/2008

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

4/1/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

7/1/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

12/31/2009

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

3/31/2010

 

90

 

5,951,609.00

 

172,299.08

 

5,951,609.00

 

6/30/2010

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2010

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

 

Schedule assumes that Note will be repaid on September 30, 2010 together with interest.

 



 

EXHIBIT A TO THIRD AMENDED AND RESTATED SENIOR SUBORDINATED PROMISSORY NOTE

 

WILLIAM BLAIR MEZZANINE CAPITAL FUND III, L.P.

ISI Detention Contracting Group

$5,951,609 Senior Subordinated Note

 

Assumptions:

 

 

 

 

 

 

 

 

 

Note

 

 

 

5,951,609

 

 

 

 

 

Interest Rate

 

 

 

11.580

%

 

 

 

 

Current Interest Rate

 

 

 

11.580

%

 

 

 

 

Current Interest Rate - after 9/30/2010

 

15.580

%

 

 

 

 

PIK Interest

 

 

 

0.0

%

 

 

 

 

Days in Year Convention

 

360

 

 

 

 

 

Closing Date

 

 

 

7/31/2007

 

 

 

 

 

Maturity Date

 

 

 

extended until 1/31/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Principal

 

Current Interest

 

Ending Principal

 

Date

 

Days

 

Amount

 

Due

 

Amount

 

7/31/2007

 

 

 

5,951,609.00

 

 

 

 

 

9/30/2007

 

62

 

5,951,609.00

 

118,694.92

 

5,951,609.00

 

12/31/2007

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

3/31/2008

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

6/30/2008

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2008

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

12/31/2008

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

4/1/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

7/1/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2009

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

12/31/2009

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

3/31/2010

 

90

 

5,951,609.00

 

172,299.08

 

5,951,609.00

 

6/30/2010

 

91

 

5,951,609.00

 

174,213.51

 

5,951,609.00

 

9/30/2010

 

92

 

5,951,609.00

 

176,127.95

 

5,951,609.00

 

12/31/2010

 

92

 

5,951,609.00

 

236,966.62

 

5,951,609.00

 

1/31/2011

 

30

 

5,951,609.00

 

77,271.72

 

5,951,609.00

 

 

Schedule assumes that Note will be not be repaid until maturity at 1/31/2011 and reflects stepped-up current interest rate.