10.1 Notice of Default
Second Amended, Restated and Consolidated Senior Secured Term Note dated
November 1, 2005 made by Sequiam Corporation
Investors, L.L.C., a Delaware limited liability company (“Note Holder”) has
acquired from Stephen A. Ross, as authorized agent for the Trust Under the
of John Svenningsen (the "Seller"), that Second Amended, Restated and
Consolidated Senior Secured Term Note dated November 1, 2005 (the "Note") made
by the Company in the amount of $3,650,000 payable to Lee Harrison Corbin,
Attorney-In-Fact for the Trust under the Will of John Svenningsen. Terms defined
in the Note are used with the same meanings in this letter.
Holder has also acquired the interests of Seller in the Related Agreements
in that Forbearance Agreement dated as of November 22, 2006 made by the Company
and the Seller (the "Forbearance Agreement").
hereby advised that an Event of Default occurred under the Note when the Company
failed to pay amounts due under the Note as of October 10, 2006, and you are
further advised that the Forbearance Termination Date under the Forbearance
Agreement has passed. Note Holder hereby declares an Event of Default under
Note and the Loan Documents (as defined in the Forbearance Agreement). Note
Holder will provide you with notice of the UCC sale which Note Holder will
schedule to liquidate the collateral for the Note.
Delaware limited liability company