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EXHIBIT 10.4
[NHANCEMENT LETTERHEAD]
June 12, 1998
LETTER AGREEMENT
Xx. Xxxxxx X. Xxxx
Xx. Xxxxxxx X. Xxxx
Xx. Xxxxx X. Xxxxxxxxx
NHancement Technologies Inc.
00000 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Gentlemen:
Re: Loans to NHancement Technologies Inc.
In connection with and in consideration of loans in the amounts of
Three Hundred Thousand Dollars ($300,000) ("LOAN 1") made to NHancement
Technologies Inc. ("DEBTOR") by Xxxxx X. Xxxxxxxxx ("LENDER"), Two Hundred
Twenty-Five Thousand Dollars ($225,000) ("LOAN 2") made to Debtor by Xxxxxxx X.
Xxxx ("LENDER 2") and One Hundred Twenty-Five Thousand ($125,000) ("LOAN 3")
made to Debtor by Xxxxxx X. Xxxx ("LENDER 3"; all of the foregoing collectively,
"LENDERS") as evidenced by those certain Promissory Notes dated on even date
herewith and made payable to order of each of Lenders by Debtor, Lenders and
Debtor hereby agree and acknowledge that Debtor shall repay Lenders in
accordance with the following priority in repayment schedules:
1. Debtor shall first repay Lender, an amount equal to all accrued
interest on and principal of Seventy-Five Thousand Dollars ($75,000) of Loan 1,
in priority over Lender 2 and Lender 3, from any legally available funds of
Debtor.
2. After the repayment of all accrued interest on and principal of
Seventy-Five Thousand Dollars ($75,000) of Loan 1, Debtor shall repay each of
Lender and Lender 2, an amount equal to all accrued interest on and principal of
One Hundred Thousand Dollars ($100,000) each of Loan 1 and Loan 2, respectively,
in priority over Lender 3, with any partial payments to be made in equal amounts
from any legally available funds of Debtor.
3. After the repayment of all accrued interest on and principal of One
Hundred Thousand Dollars ($100,000) each of Loan 1 and Loan 2, Debtor shall
repay each of Lenders an amount equal to all accrued interest on and principal
of One Hundred Twenty-Five Thousand Dollars ($125,000) each of Loan 1, Loan 2
and Loan 3, with any partial payments to be made in equal amounts on pro rata
basis from any legally available funds of Debtor.
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NHancement Technologies Inc.
Letter Agreement
Page 2
IN WITNESS WHEREOF, this letter agreement has been executed by the
undersigned this 12th day of June, 1998.
DEBTOR:
NHANCEMENT TECHNOLOGIES INC.
By: /s/ Xxxxxx X. Xxxx
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Its: President and Chief Executive Officer
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Acknowledged and Agreed:
/s/ Xxxxx X. Xxxxxxxxx
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Xxxxx X. Xxxxxxxxx
/s/ Xxxxxxx X. Xxxx
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Xxxxxxx X. Xxxx
/s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxx
