NOTE MODIFICATION AGREEMENT
Exhibit 10.19
PREPARED
BY
Liberty
National Bank
Xxxxxx X
Xxxxxxxx
503N.
Xxx. 00-00
Xxxxxxxx
XX 00000
THIS NOTE
MODIFICATION AGREEMENT, made this 12th
day of May, 2004 with an effective date of May 1, 2004 between CRYSTAL MAGIC,
INC., a. Florida corporation, by Xxxxxx X. Xxxxxx, President, hereinafter
referred to as the Borrower, and LIBERTY NATIONAL BANK, hereinafter referred to
as the Lender.
The
Promissory Note herein modified was given to secure a loan which was made under
a United States Small Business Administration (SBA) nationwide program which
uses tax dollars to assist small business owners. If the United States is
seeking to enforce this document, then under SBA regulations:
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a.
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When
SBA is the holder of the Note, this document and all documents evidencing
or securing this Loan will be construed in accordance with federal
law.
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b.
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Lender
of SBA may use local or state procedures for purposes such as filing
papers, recording documents, giving notice, foreclosing liens, and other
purposes. By using these procedures, SBA does not waive any federal
immunity from local or state control, penalty, tax or liability. No
Borrower or Guarantor may claim or assert against SBA any local or state
law to deny any obligation of Borrower, or defeat any claim of SBA with
respect to this Loan.
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Any
clause in this document requiring arbitration is not enforceable when SBA is the
holder of the Note secured by this instrument.
WITNESSETH:
WHEREAS,
the Lender is the owner and holder of that certain $250,000.00 Note dated
October 13, 2000 executed and delivered by the Borrower, payable interest only
for the first three (3) mouths and thereafter in initial monthly installments of
$4,452.00 beginning on the first day of the fourth (4th) month
from the date of the Note and further modified by a Note Modification Agreement
dated December 20, 2002 and effective November 1, 2002 and again further
modified by a Note Modification Agreement dated November 25, 2003 and effective
November 1, 2003; on which there is now owing the principal sum of
$211,000.59,
WHEREAS,
it is the mutual desire of the parties that the terms and conditions of said
Note be modified.
NOW
THEREFORE, in consideration of the foregoing and the payment of One Dollar ($
1.00) in hand paid by the Borrower to the Lender and other good ‘and valuable
consideration, the receipt whereof is hereby acknowledged, the terms and
conditions of the Note are hereby modified as follows:
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A.
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A
six month maturity based on a twenty (20) year amortization calculated
from November 1, 2002. This modification is effective May 1, 2004 and due
and payable on November 1, 2004. The interest paid to date of loan is
April 9,2004. The Borrower shall pay the unpaid principal balance and
accrued interest in monthly installments of $1,607.00 commencing on the
1st
day of June, 2004 and continuing on the 1st
day of each and every month thereafter until November 1, 2004, The
interest rate shall be fixed at 6,25%. The total amount of principal and
interest remaining on November 1, 2004 will be due and
payable.
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B.
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The
Borrower covenants and agrees to pay that unpaid principal and interest as
above set forth and to comply with all of the terms, covenants and
conditions of said Note as hereby
modified.
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C.
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Borrower
acknowledges, covenants and represents to the Lender
that:
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1. all
documents executed in connection with the loan evidenced the Note and Mortgage,
and any future advance, are valid and binding and are enforceable m accordance
with their terms;
2. there
are no defenses, set-offs, counter-claims, cross-actions or equities to or
against the enforcement of the loan documents executed in connection with the
loan; and
3. no
agreements, oral or otherwise, have been made by Lender to make any additional
modifications, amendments or extensions note and loan documents.
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D.
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Except
as modified herein, all of the terms and conditions of the Note dated
October 13, 2000, shall remain in full force and
effect.
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E.
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In
the event that the Modified Note is not completely paid off at maturity,
to include all principal and interest, on November 1, 2004, the original
terms of the Original Note dated October 13, 2000 shall remain in full
force and effect.
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IN
WITNESS WHEREOF, CRYSTAL MAGIC, INC., and Liberty National Bank have caused this
Mortgage and Note Modification Agreement to be executed in their names and on
their behalves and their corporate seals to be affixed by and through their
respective duly authorized officers, Xxxxxx Xxxx and Xxxxxx X. Xxxxxx have set
forth their hands the day and year first above written.
Signed
and sealed in the presence
of: CRYSTAL
MAGIC, INC.
/s/ Xxxxx X. XxxxxxxBy: Xxxxxx X. Xxxxxx, Its President
STATE OF
FLORIDA
COUNTY
OF SEMINOLE
Sworn to
and subscribed before me this 12 day of May, 2004 by Xxxxxx X. Xxxxxx, the
President and Secretary of Crystal Magic, Inc., a Florida Corporation, on behalf
of the corporation, who provided a Florida Drivers License as
identification.
NOTARY
PUBLIC: /s/ Xxxxx X. Xxxxxxx
My
Commission Expires: 12/26/06
Signed
and sealed in the presence
of: Liberty
National Bank:
/s/ Xxxxxx X. Xxxxxxx By: Xxxxxx Xxxx, Its Vice President
STATE OF
FLORIDA
COUNTY
OF SEMINOLE
Sworn to and subscribed before me this 12 day of May, 2004 by Xxxxxx Xxxx who is Sr. Vice
Pres Liberty Nation Bank or has provided a Florida Driver’s License as identification
NOTARY
PUBLIC: /s/ Xxxxx X. Xxxxxxx
My
Commission Expires: 12/26/06
