September 4, 2003
Xxxxxx X. Xxxxx
0000 Xxxx Xxxxxxxx Xxxxx
Xxx Xxxxx, Xxxxxx 00000
RE: $50,000 LOAN
Dear Xxxxxx,
This letter will confirm the terms concerning the $50,000 loan made by you
("Xxxxx") to Vertical Computer Systems, Inc. ("Vertical") and the amendment to
the loan agreement between Xxxxx and Vertical concerning the $150,000 in loans
("$150,000 Loans") made by Xxxxx to Vertical. Vertical and Xxxxx hereby agree as
follows:
1. Xxxxx shall loan Vertical the sum of $50,000 and Vertical shall issue a
promissory note (the "$50,000 Note") for a principal amount of $50,000 at
thirteen percent (13%) interest per annum payable in monthly accrued interest
payments beginning October 1, 2003, and a final payment of all principal and
remaining interest will be due by March 31, 2004.
2. The parties confirm that Vertical currently owes a total amount $163,133 in
principal, interest, and fees for the $150,000 Loans as of this date of
September 4, 2003, plus the $50,000 principal for the $50,000 Note. In
consideration of the loans made to Vertical, Vertical will pledge its interest
in the promissory note issued by Now Solutions to Vertical in the amount of
$215,000 (the "Now Note") as of this date as collateral to secure the $100,000
and $40,000 notes issued by on July 1, 2003 at 13% interest. At Weber's option
and in his sole discretion, Xxxxx may have the entire interest of the Now Note
assigned to him. In the event Xxxxx has the entire interest assigned to him,
then Xxxxx shall forgive all outstanding amounts debt, including the $100,000
and $40,000 notes, and cancels these notes plus the $50,000 Note. Upon execution
of the assignment, Now's separate payment of monthly interest for the $215,000
Note shall be endorsed by Vertical to Xxxxx so that Xxxxx shall receive the
accrued interest payments for the $215,000 Note.
If the foregoing is acceptable, please executed this agreement in the space
provided below.
Sincerely,
_______________________________________
Xxxxxxx Xxxx
President/CEO
Vertical Computer Systems, Inc.
ACCEPTED AND AGREED:
___________________________________
Xxxxxx X. Xxxxx
