Amended Line of Credit Agreement
Amended
Line of Credit Agreement
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August
1, 0000
|
|
|
Xxxx
Xxxxx, Xxxxxxx
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Whereas,
the Borrower and Lender entered into a Line of Credit Agreement on April
27,
2007 for a maximum amount of three hundred thousand dollars
($300,000);
Where
as
the Borrower and Lender desire to amend the Line of Credit Agreement to increase
the maximum amount of the Line of Credit to five hundred thousand dollars
($500,000);
NOW
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and the Borrower and Lender
intending to be legally bound, do hereby unconditionally agree as
follows:
Freedom
Financial Holdings, Inc., (“FFH”) a corporation organized and existing under the
laws of the State of Maryland, having its principal place of business at 0000
Xxxxxxxxxxx Xxx, Xxxx Xxxxx, Xxxxxxx (the "Borrower") promises to pay to the
order of Xxxxxx Xxxxxxxx an individual existing under the laws of the State
of
Indiana having its principal residence at 0000 Xxxxxxxxx Xxxx, Xxxx Xxxxx,
Xxxxxxx 00000 (the "Lender") at the residence of the Lender or such other place
as the holder hereof shall designate the amount of principal that has been
borrowed on this agreed line of credit with a maximum amount of five
hundred thousand dollars ($500,000).
The
term
on this line of Credit will be at an interest rate gain of ten percent (10%).
Said principal and flat ten percent (10%) will be paid in full upon FFH raising
$1,500,000 in the anticipated Initial Public Offering (“IPO”) of FFH. In the
event that FFH raises less than $1,500,000 in the IPO, the principal will
continue to accrue interest at flat rate of 20% per year and will be paid from
operations, when available.
All
loans
hereunder and all payments on account of principal hereof shall be recorded
by
the Lender and, prior to any transfer hereof, endorsed on the grid attached
which is part of this Line of Credit agreement, the entries on the records
of
the Lender (including any appearing on this Line of Credit) shall be prima
facie
evidence of amounts outstanding hereunder.
All
or
any part of the aforesaid principal sum and interest may be prepaid at any
time
and from time to time without penalty.
Any
deposits or other sums at any time credited by or due from the holder to the
Borrower, or to any endorser or guarantor hereof, and any securities or other
property of the Borrower or any such endorser or guarantor at any time in the
possession of the holder may at all times be held and treated as collateral
for
the payment of this Line of Credit and any and all other liabilities (direct
or
indirect, absolute or contingent, sole, joint or several, secured or unsecured,
due or to become due, now existing or hereafter arising) of the Borrower to
the
holder. Regardless of the adequacy of collateral, the holder may apply or set
off such deposits or other sums against such liabilities at any time in the
case
of the Borrower, but only with respect to matured liabilities in the case of
endorsers and guarantors.
The
Borrower and every endorser and guarantor of this Line of Credit hereby waive
presentment, demand, notice protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement
hereof and consent that no indulgence, and no substitution, release or surrender
collateral, and no discharge or release of any other party primarily or
secondarily liable hereon, shall discharge or otherwise affect the liability
of
the Borrower or any such endorser or guarantor. No delay or omission on the
part
of the holder in exercising any right hereunder shall operate as a waiver of
such right or any other right hereunder, and a waiver of any such right on
any
one occasion shall not be construed as a bar to or waiver of any such right
on
any future occasion.
Any
notice to Borrower provided for in this Line of Credit shall be given by mailing
such notice by certified mail return receipt requested addressed to Borrower
at
the address stated below, or to such other address as Borrower may designate
by
notice to the Line of Credit holder. Any notice to the Line of Credit holder
shall be given by mailing such notice by certified mail, return receipt
requested, to the Line of Credit holder at the address stated above in this
Line
of Credit, or at such other address as may have been designated by notice to
Borrower.
The
Borrower and every endorser and guarantor hereof agree to pay on demand all
costs and expenses (including legal costs and attorneys' fees) incurred or
paid
by the holder in enforcing this Line of Credit on default.
This
Line
of Credit shall take effect as a sealed instrument and shall be governed by
the
laws of the State of Indiana.
/s/
Xxxxx
Xxxxxxx
CEO
Freedom
Financial Holdings, Inc
/s/
Xxxxxx
X.
Xxxxxxxx
0000
Xxxxxxxxx Xxxx
Xxxx
Xxxxx, Xx 00000
GRID
ADVANCES
AND PAYMENTS OF PRINCIPAL
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Date
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Amount
of Loan
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Outstanding
Principal Balance
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Notation
Made By
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|||||||
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4/27/07
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$
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100,000
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$
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100,000
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BK
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|||||
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5/21/07
|
$
|
100,000
|
$
|
200,000
|
BK
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|||||
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6/26/07
|
$
|
100,000
|
$
|
300,000
|
BK
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|||||
|
8/01/07
|
$
|
100,000
|
$
|
400,000
|
|
BK
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||||
