Loan Agreement with A.M Xxxxxxx
WHEREAS, Xxxxxxx Xxxxxxx Xxxxxxx, 0000 Xxxxxx Xxxxxx, Xxxx Xxxxxxxxx, XX X0X
0X0, Xxxxxx, and Abacus Systems Ltd and General Audit Systems. Inc, private
companies controlled by him, have advanced loans amounting in total to $121,400
to the Company to June 30, 2000:
AND, The purpose of the loans is to provide working capital for the Company. AND
loans have been provided for the Company in the following amounts:
Dates Loans
Advanced
--------------------------------------------
02/96 - 12/31/97 $ 37,763
01/01/98 - 09/30/98 $ 1,010
10/01/98 - 12/31/98 Nil
01/01/99 - 03/31/99 $ 27,996
04/01/99 - 06/30/99 $ 4,607
07/01/99 - 09/30/99 $ 13,537
10/01/99 - 12/31/99 $ 10,000
01/01/00 - 03/31/00 $ 16,896
04/01/00 - 06/30/00 $ 9,591
--------------------------------------------
Total $121,400
AND, that A.M Xxxxxxx and companies controlled by him have received 5,107,500
common shares at $0.01 per share in lieu of cash repayment of debt, as follows:
Dates Loans Shares Reduction Loan balance
Advanced Issued in debt 0wing to
Xx. Xxxxxxx
--------------------------------------------------------------------------------
02/96 - 12/31/97 $ 37,763 $ 37,763
01/01/98 - 09/30/98 $ 1,010 $ 38,773
10/01/98 - 12/31/98 Nil $ 38,773
01/01/99 - 03/31/99 $ 27,996 $ 66,769
04/01/99 - 06/30/99 $ 4,607 $ 71,376
07/01/99 - 09/30/99 $ 13,537 3,050,000 $30,500 $ 54,413
10/01/99 - 12/31/99 $ 10,000 7,500 $ 75 $ 64,338
01/01/00 - 03/31/00 $ 16,896 2,050,000 $20,500 $ 60,734
04/01/00 - 06/30/00 $ 9,591 $ 70,325
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Totals $121,400 5,107,500 $51,075 $ 70,325
THEN, it is hereby agreed that the terms of these loans are as follows:
1. The loans are interest free.
2. The loans are repayable on immediate demand in common shares in lieu of
cash.
3. The value of shares issued, and to be issued, in settlement of the said
loans is determined by calculating the value of shareholder equity per
share at the most recently available financial statement, or $0.01 per
share, whichever value is greater at the time of issue.
The balance of loans outstanding at June 30, 2000 amounted to $70,325.
In this agreement the term "repayable on immediate demand" means that upon
receipt by the Company of a written request from A.M.Xxxxxxx for repayment of
the balance of outstanding loans by issuance of shares, the Company will
authorize the issuance of shares of common stock within seven (7) working days
from receipt of the written request from Xx. Xxxxxxx, in full accordance with
the terms of the agreement.
The effective date of this loan agreement is September 7, 2000.
Signed by A.M Xxxxxxx Signed by Millennium Software, Inc.
/s/ Xxxxxxx Xxxxxxx /s/ Xxxxxxx Xxxxxxx
A.M. Xxxxxxx A.M. Xxxxxxx/President
7th September, 2000 7th September, 2000
