REVOLVING LINE OF CREDIT AGREEMENT
This
Revolving Line of Credit Agreement (the "AGREEMENT") is made and entered
into in this 2nd day of July, 2007, by and between BEDMINSTER NATIONAL
CORP. , a Nevada corporation (“Lender”), and METROPOLITAN
COMPUTING CORPORATION, a New Jersey corporation
("Borrower").
This
Agreement is the Line of Credit
Agreement identified in the Stock Purchase Agreement between Borrower and
Lender, inter alia, of even date herewith (Purchase
Agreement).
In
consideration of the mutual covenants and agreements contained herein, the
parties agree as follows:
1. LINE
OF CREDIT. Lender hereby establishes for a period extending to June 30.
2012 (the "MATURITY DATE") a revolving line of credit (the "CREDIT
LINE") for Borrower in the principal amount of Four Hundred Thousand Dollars
($400,000.00) (the "CREDIT LIMIT"). In connection herewith, Borrower shall
execute and deliver to Lender a Promissory Note in the amount of the Credit
Limit and in form and content satisfactory to Lender. All sums advanced on
the
Credit Line or pursuant to the terms of this Agreement (each an "ADVANCE")
shall
become part of the principal of said Promissory Note.
2. ADVANCES.
Any request for an Advance may be made from time to time and in such amounts
as
Borrower may choose; provided, however, (a) Borrower shall request and use
the
first advance to repay any secured and unsecured debt of Borrower (other than
trade debt incurred in the normal course of business) existing on the date
hereof, and (2) any requested Advance will not, when added to the outstanding
principal balance of all previous Advances, exceed the Credit Limit. Requests
for Advances may be made orally or in writing by such officer of Borrower
authorized by it to request such Advances. Until such time as Lender may be
notified otherwise, Borrower hereby authorizes its president to request
Advances. Lender may deliver the amount of any requested Advance by check or
deposit to Borrower’s bank account by wire transfer or electronic funds
transfer. Lender may refuse to make any requested Advance if an event
of default has occurred and is continuing hereunder either at the time the
request is given or the date the Advance is to be made, or if an event has
occurred or condition exists which, with the giving of notice or passing of
time
or both, would constitute an event of default hereunder as of
such
dates.
The
funds from the Advances will be used by the Borrower for the purposes specified
in the Purchase Agreement and otherwise to pay operating expenses in connection
with the operations of the Borrower.
3. INTEREST.
All sums advanced pursuant to this Agreement shall bear interest from the date
each Advance is made until paid in full at the rate of eight percent (8%) per
annum, simple interest (the "EFFECTIVE RATE").
4. REPAYMENT.
a. Borrower
shall pay the outstanding principal balance and accrued interest on the
outstanding principal balance on not less than an annual basis
commencing on June 30, 2008. In the event that Borrower repays the outstanding
principal balance and accrued interest on the outstanding principal balance
prior to the annual repayment date, the Borrower shall not be required to repay
the outstanding principal balance and accrued interest on the outstanding
principal balance for twelve (12) months from the date of such
repayment. The entire unpaid principal balance, together with any
accrued interest and other unpaid charges or fees hereunder, shall be due and
payable on the Maturity Date. All payments shall be made to Lender at such
place
as Lender may, from time to time, designate. All payments received hereunder
shall be applied, first, to any costs or expenses incurred by Lender in
collecting such payment or to any other unpaid charges or expenses due
hereunder; second, to accrued interest; and third, to principal. Borrower may
prepay principal at any time without penalty.
b. Borrower
may be entitled to a credit of $100,000 against outstanding principal
as provided in the Purchase Agreement.
5. REPRESENTATIONS
AND WARRANTIES. In order to induce Lender to enter into this Agreement and
to
make the advances provided for herein, Borrower represents and warrants to
Lender as follows:
a. Borrower is a duly organized,
validly existing, and in good standing under the laws of the State of New Jersey
with the power to own its assets and to transact business in New Jersey, and
in
such other states where its business is conducted.
b. Borrower
has the authority and power to execute and deliver any document required
hereunder and to perform any condition or obligation imposed under the terms
of
such documents.
c. The
execution, delivery and performance of this Agreement and each document incident
hereto will not violate any provision of any applicable law, regulation, order,
judgment, decree, article of incorporation, by-law, indenture, contract,
agreement, or other undertaking to which
Borrower is a party, or which purports to be binding on Borrower or its assets
and will not result in the creation or imposition of a lien on any of its
assets.
d. There
is no action, suit, investigation, or proceeding pending or, to the knowledge
of
Borrower, threatened, against or affecting Borrower or any of its assets which,
if adversely determined, would have a material adverse affect on the financial
condition of Borrower or the operation of its business.
6. EVENTS
OF DEFAULT. An event of default will occur if any of the
following events occurs:
a. Failure
to pay any principal or interest hereunder within ten (10) days after the same
becomes due.
b. Any
representation or warranty made by Borrower in this Agreement or in connection
with any borrowing or request for an Advance hereunder, or in any certificate,
financial statement, or other statement furnished by Borrower to Lender is
untrue in any material respect at the time when made.
c. Default
by Borrower in the observance or performance of any other covenant or agreement
contained in this Agreement, the Purchase Agreement or in any document ancillary
to the Purchase Agreement.
d. Filing
by Borrower of a voluntary petition in bankruptcy seeking reorganization,
arrangement or readjustment of debts, or any other relief under the Bankruptcy
Code as amended or under any other insolvency act or law, state or federal,
now
or hereafter existing.
e. Filing
of an involuntary petition against Borrower in bankruptcy seeking
reorganization, arrangement or readjustment of debts, or any other relief under
the Bankruptcy Code as amended, or under any other insolvency act or law, state
or federal, now or hereafter existing, and the continuance thereof for sixty
(60) days undismissed, unbonded, or undischarged.
7. REMEDIES.
a. Upon
the occurrence of an event of default as defined above, Lender may declare
the
entire unpaid principal balance, together with accrued interest thereon, to
be
immediately due and payable without presentment, demand, protest, or other
notice of any kind. Lender may suspend or terminate any obligation it may have
hereunder to make additional Advances. To the extent permitted by law, Borrower
waives any rights to presentment, demand, protest,
or notice of any kind in connection with this Agreement. No failure or delay
on
the part of Lender in exercising any right, power, or privilege hereunder will
preclude any other or further exercise thereof or the exercise of any other
right, power, or privilege. The rights and remedies provided herein are
cumulative and not exclusive of any other rights or remedies provided at law
or
in equity. Borrower agrees to pay all costs of collection incurred by reason
of
the default, including court costs and reasonable attorney's fees.
b. At
the option of Lender, if repayment of the outstanding principal balance and
accrued interest on the outstanding principal balance is not made as required
by
Section 4 a. above, on June 30, 2008, or any subsequent anniversary thereof
or
of an annual repayment date as provided in Section 4 a. above, through and
including the Maturity Date, Lender may (i) by written notice to
Borrower, declare that all accrued and unpaid interest is immediately due and
payable without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived, and (ii) thereupon convert
the outstanding principal balance of this revolving line of credit into a term
loan, having a term of 12 months, bearing interest at 8% per annum, with equal
monthly payments of principal and interest due beginning on the first day of
August thereafter, and on the first day of each successive month
thereafter for the following 11 months, and containing normal and customary
terms and conditions. Such term loan may be prepaid at any time, in whole or
in
part, without premium or penalty. Such term loan will require
Borrower to pay, in addition to such equal monthly payments, additional
principal payments of up to $15,000 per month from Borrower’s monthly
pre-tax earnings.
8. NOTICE.
All notices or other communications required or permitted hereunder will be
in
writing and will be deemed given or delivered when delivered personally, by
registered or certified mail, by legible facsimile transmission or by overnight
courier (fare prepaid) addressed as follows:
If
to Lender to:
00
Xxxxxxxxxx Xxxxxx Xxxx
Xxxxxxxxxx,
XX 00000
Attn:
Xxxx Xxxxxxxx, President
If
to Borrower to:
Metropolitan
Computing Corporation.
0
Xxxxx Xxxxxx Xxxx
Xxxx
Xxxxxxx , Xxx Xxxxxx 00000
Attn:
Xxxxxxx Xxxxx
|
with
a copy to:
Xxxxxx
X Xxxxxxx
00
Xxxxx Xxxxxx
Xxxxxxxxxx,
XX 00000
With
a copy to:
Xxxxx
X. Xxxxxxxxx, Esq.
Xxxxxx
Xxxxxxxxx, P.A.
00
Xxxx Xxxxxx
Xxxx
Xxxxxx, XX 00000
|
Notice
will be deemed received the same day (when delivered personally), five (5)
days
after mailing (when sent by registered or certified mail) and the next business
day (when delivered by recognized overnight courier). Any party to
this Agreement may change its address to which all communications and notices
may be sent by addressing notices of such change in the manner
provided.
9. GENERAL
PROVISIONS. All representations and warranties made in this Agreement and the
Promissory Note and in any certificate delivered pursuant thereto shall survive
the execution and delivery of this Agreement and the making of any loans
hereunder. This Agreement will be binding upon and inure to the benefit of
Borrower and Lender, their respective successors and assigns, except that
Borrower may not assign or transfer its rights or delegate its duties hereunder
without the prior written consent of Lender. This Agreement, the Promissory
Note, and all documents and instruments associated herewith will be governed
by
and construed and interpreted in accordance with the laws of the State of New
Jersey. Time is of the essence hereof. This Agreement will be deemed to express,
embody, and supersede any previous understanding, agreements, or commitments,
whether written or oral, between the parties with respect to the general subject
matter hereof. This Agreement may not be amended or modified except in writing
signed by the parties.
SIGNATURE
PAGE FOLLOWS
EXECUTED
on the day and year first written above.
Borrower: Metropolitan
Computing
Corporation
By:__________________________________
Xxxxxxx
Xxxxx,
President
Lender: Bedminster
National Corp.
By:
________________________________
Xxxx
Xxxxxxxx, President
PROMISSORY
NOTE
$400,000.00
|
July
2, 2007
Bedminster,
New Jersey
|
This
Promissory Note (the "NOTE") is made and executed as of the date referred to
above, by and between Metropolitan Computing Corporation., a New Jersey
corporation (the "BORROWER"), and Bedminster National Corp., a Nevada
Corporation, ("LENDER"). By this Note, the Borrower promises and agrees to
pay
to the order of Lender, at 00 Xxxxxxxxxx Xxxxxx Xxxx, Xxxxxxxxxx,
XX 00000 or at such other place as Lender may designate in writing,
the principal sum of Four Hundred Thousand and 00/100 Dollars ($400,000.00),
or
the aggregate unpaid principal amount of all advances made by Lender to Borrower
pursuant to the terms of a Revolving Line of Credit Agreement (the "LOAN
AGREEMENT") of even date herewith, less any applicable credits, whichever is
less, together with interest thereon from the date each advance is made until
paid in full, both before and after judgment, at the rate of
eight percent (8%) per annum, simple interest.
Borrower
shall pay the outstanding principal balance and accrued interest on the
outstanding principal balance on an annual basis commencing on June 30, 2008.
In
the event that Borrower repays the outstanding principal balance and accrued
interest on the outstanding principal balance prior to the annual repayment
date, the Borrower shall not be required to repay the outstanding principal
balance and accrued interest on the outstanding principal balance for twelve
(12) months from the date of such repayment. The entire unpaid
principal balance, together with any accrued interest and other unpaid charges
or fees hereunder, shall be due and payable on June 30, 2012 (the
"MATURITY DATE").
Prepayment
in whole or part may occur at any time hereunder without penalty; provided
that
the Lender shall be provided with not less than ten (10) days notice of the
Borrower's intent to pre-pay; and provided further that any such partial
prepayment shall not operate to postpone or suspend the obligation to make,
and
shall not have the effect of altering the time for payment of the remaining
balance of the Note as provided for above, unless and until the
entire
obligation
is paid in full. All payments received hereunder shall be applied, first, to
any
costs or expenses incurred by Lender in collecting such payment or to any other
unpaid charges or expenses due hereunder; second, to accrued interest; and
third, to principal.
An
event of default will occur if any of the following events occurs:
(a)
failure to pay any principal or
interest hereunder within ten (10) days after the same becomes due; (b) if
any
representation or warranty made by Borrower in the Loan Agreement or in
connection with any borrowing or request for an advance thereunder, or in any
certificate, financial statement, or other statement furnished by Borrower
to
Lender is untrue in any material respect at the time when made; (c) default
by
Borrower in the observance or performance of any
other
covenant or agreement contained in the Loan Agreement; (d) filing by Borrower
of
a voluntary petition in bankruptcy seeking reorganization, arrangement or
readjustment of debts, or any other relief under the Bankruptcy Code as amended
or under any other insolvency act or law, state or federal, now or hereafter
existing; or (e) filing of an involuntary petition against Borrower in
bankruptcy seeking reorganization, arrangement or readjustment of debts, or
any
other relief under the Bankruptcy Code as amended, or under any other insolvency
act or law, state or federal, now or hereafter existing, and the continuance
thereof for sixty (60) days undismissed, unbonded, or undischarged.
Any
notice or demand to be given to the parties hereunder shall be deemed to have
been given to and received by them and shall be effective when personally
delivered or by sent by registered or certified mail, by legible facsimile
transmission or by overnight courier (fare prepaid) and addressed to the party
all as provided in the Loan Agreement, or at such other address as the one
of
the parties may hereafter designate in writing to the other party.
The
Borrower hereof waives presentment for payment, protest, demand, notice of
protest, notice of dishonor, and notice of nonpayment, and expressly agrees
that
this Note, or any payment hereunder, may be extended from time to time by the
Lender without in any way affecting its liability hereunder.
In
the event any payment under this Note is not made at the time and in the manner
required, the Borrower agrees to pay any and all costs and expenses which may
be
incurred by the Lender hereof in connection with the enforcement of any of
its
rights under this Note or under any such other instrument, including court
costs
and reasonable attorneys' fees.
This
Note shall be governed by and construed and enforced in accordance with
the
laws of New Jersey.
Borrower: Metropolitan
Computing
Corporation
By:__________________________________
Xxxxxxx
Xxxxx,
President
Accepted:
Lender: Bedminster
National Corp.
By:
________________________________
Xxxx
Xxxxxxxx, President