BUSINESS LOAN AGREEMENT
Borrower: America's Best Karate, Inc. Lender: Xxxxx T.I. Xxxx
00000 Xxxxxxxxxx Xxxxxx, Xxxxx 0 000 Xx Xxxxxxx Xxx.
Xxxxxxx, XX 00000 Xxxxxxxx, XX 00000
Principal Loan Date Int. Rate Terms Paymt Amt Payment Date
$13,000 00-00-00 14.00% 60 mos. $314.12 1st of each month
THIS BUSINESS LOAN AGREEMENT between AMERICA'S BEST KARATE, INC. ("Borrower")
and XXXXX T.I. SHEN ("Lender") is made and executed on the following terms
and conditions.
TERM. This Agreement shall be effective as of June 1, 1995, and shall
continue for 60 months and until all indebtedness of Borrower to Lender has
been performed in full and the parties terminate this Agreement in writing.
REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender
as of the date of this Agreement:
ORGANIZATION. Borrower is a corporation which is duly organized,
validly existing, and in good standing under the laws of the State of
California. Borrower has the full power and authority to own its
properties and to transact the businesses in which it is presently
engaged or presently proposes to engage. Borrower also is duly
qualified as a foreign corporation and is in good standing in all states
in which the failure to so qualify would have a material adverse effect
on its businesses or financial condition.
AUTHORIZATION. The execution, delivery, and performance of this
Agreement and all related documents by Borrower, to the extent to be
executed and performed by Borrower, have been duly authorized by all
necessary action by Borrower; and do not conflict with any provision of
its articles of incorporation or organization or bylaws.
LEGAL EFFECT. This Agreement constitutes, and any instrument or
agreement require hereunder to be given by Borrower when delivered will
constitute, legal, valid and binding obligations of Borrower enforceable
against Borrower in accordance with their respective terms.
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LITIGATION AND CLAIMS. No litigation or claim against Borrower is
pending or threatened, and no other event has occurred which may
materially adversely affect Borrower's financial condition or
properties, as of the date of this Agreement.
COMMERCIAL PURPOSE. Borrower intends to use the Loan proceeds solely for
business or commercial related purposes.
SURVIVAL OF REPRESENTATION AND WARRANTIES. Borrower understands and agrees
that Lender is relying upon the above representations and warranties in
making the above referenced Loan to Borrower. Borrower further agrees that
the foregoing representations and warranties shall be continuing in nature
and shall remain in full force and effect until such time as Borrower's
Loan shall be paid in full, or until this Agreement shall be terminated in
the manner provided above, whichever is the last to occur.
GUARANTEE. At time of disbursement of Loan proceeds, the following persons
shall furnish executed guaranties of the amount of the Loan in favor of
Lender.
Guarantors: Xxxxxxx X. Xxxx Xxxxxx Xxxxx
INSPECTION. Lender or agents of Lender may at any reasonable time, inspect
Borrower's properties and examine or audit Borrower's books, accounts, and
records.
DEFAULT. Defined as failure of Borrower to make any payment to Lender when
due on the Loan. In the event of Default, Lender may immediately request
the entire remainder of Loan to become due and payable. Lender may submit
to the jurisdiction of the courts of Alameda County, the State of
California. Borrower agrees to pay upon demand all of Lender's out-of-
pocket expenses, including attorney's fees, incurred in connection with
Borrower's Default on this Agreement. Borrower also will pay any court
costs, in addition to all other sums provided by law.
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BORROWER AND LENDER acknowledge having read all the provisions of this Business
Loan Agreement, and agree to its items. This agreement is dated as of June 1,
1995.
BORROWER:
AMERICA'S BEST KARATE, INC.
By: /s/ Xxxxxxx X. Xxxx
-------------------------------------
Xxxxxxx X. Xxxx,
Chief Executive Officer & Secretary
By: /s/ Xxxxxx Xxxxx
-------------------------------------
Xxxxxx Xxxxx,
President
LENDER:
/s/ Xxxxx T. I. Shen
------------------------------------------
(signature)
Xxxxx T. I. Xxxx
(name in print)
Address: 000 Xx Xxxxxxx Xxx.
Xxxxxxxx, XX 00000
Home Phone: (000) 000-0000
Office Phone:
Social Security #: ###-##-####
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