EXHIBIT 10.16
Beta Foods, LLC
0000 Xxxx Xxxx Xxxxx
Xxxxx 000
Xxxxxxx, Xxxxx 00000
November 11, 2004
American Consolidated Management Group, Inc.
000 Xxxxxxxx Xxxx
Xxxxx, Xxxxx Xxxxxxxx 00000
Re: Line of Credit
Gentlemen:
When accepted by you, this shall constitute our complete agreement
concerning the issuance to you of a Line of Credit in the amount of $300,000.00.
Beta Foods, L.L.C. hereby grants unto American Consolidated Management
Group, Inc. ["ACMG"] a line of credit in the amount of $300,000.00 pursuant to
the following terms and conditions.
a. Beta shall advance $100,000.00 immediately, and indeed
pursuant to a verbal agreement, has already advanced said sum
on November 5, 2004. Beta shall advance the additional
$200,000.00 in equal amounts of $50,000.00, with each amount
to be advanced on the 1st day of the month for December, 2004
and each month thereafter until the full amount is advanced.
By the execution hereof, ACMG hereby acknowledges receipt of
the aforesaid $100,000.00 on November 5, 2004.
b. All sums advanced by Beta to ACMG shall bear interest at ten
percent (10%) per annum, until maturity, after which any
unpaid sum shall bear interest at the rate of eighteen percent
(18%) per annum. Interest shall begin to run on the date of
each respective advance of funds.
c. All sums advanced pursuant to this line of credit shall become
due and payable on June 30, 2005. This Agreement shall be
construed in accordance with the laws of the State of South
Carolina, without regard to its rules for conflicts of law;
however, venue for the enforcement of this agreement shall be
in Xxxxxx County, Texas and all sums due and payable shall be
payable in Xxxxxx County, Texas.
The parties agree promptly to execute any document reasonable necessary
to assure that the undertakings expressed herein are carried out and that this
Agreement is otherwise fully implemented in all respects.
This Agreement may not be amended, modified, or altered unless such
amendment, modification or authorization is in writing executed by each party.
This Agreement supersedes all prior and contemporaneous discussions,
undertakings and verbal agreements concerning the subject matter hereof.
The obligations and restraints imposed on the parties to this Agreement
shall be separate and severable from each other and shall be deemed to be so
notwithstanding that they appear in the same paragraph or sentence as any other
obligation or restraint or are imposed by the introduction of a word or phrase
conjunctively or disjunctively with or alternatively to the other words or
phrases. The language of all parts of this Agreement shall be construed as a
whole, according to its fair meaning, and not strictly for or against any
particular party. Should any provision of this Agreement be declared or be
determined by any court to be illegal or invalid, the validity of the remaining
provisions shall not be affected thereby.
This agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same Agreement.
If the foregoing is your understanding of our agreement, and is
completely satisfactory to you, please indicate your acceptance in the space
provided below and return two copies to our offices.
Regards,
/s/ Xxxxxxx X. Xxxxxx
-------------------------
Xxxxxxx X. Xxxxxx
President
Xxxxxx to and accepted this 11th day of November, 2004.
American Consolidated Management Group, Inc.
By: /s/ Xxxxxx Xxxxxx
-----------------------
Xxxxxx Xxxxxx
Director
