BUSINESS LOAN AGREEMENT
Borrower: America's Best Karate, Inc. Lender:
0000 Xxxxxxx Xxxx Xxxx
Xxxxxx, Xx 00000
Principal Loan Date Int. Rate Terms Paymt Amt Payment Date
$13,000 00-00-00 14.00% 60 mos. $314.12 9th of each month
THIS BUSINESS LOAN AGREEMENT between AMERICA'S BEST KARATE, INC. ("Borrower")
and XXXXXX XXXX XXX ("Lender") is made and executed on the following terms and
conditions.
TERM. This Agreement shall be effective as of December 9, 1994, 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.
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
December 9, 1994.
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/ Xxxxxx Xxxx Woo
-----------------------------------
(signature)
Xxxxxx Xxxx Xxx
-----------------------------------
(name in print)
Address: 0000 Xxxxxxxx Xx.
Xxx Xxxxxxxxx, XX 00000
Home Phone: (000) 000-0000
Office Phone: (000) 000-0000
Social Security #: ###-##-####
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