Exhibit 10.5
LOAN AGREEMENT
This agreement (this "Agreement"), dated August 31, 2004, is made by and between
Sound Revolution Inc., a Delaware corporation (the "Company"), Xxxxx Xxxxx,
Chairman and Chief Financial Officer of the Company ("Green"), and Bacchus
Entertainment Ltd. (the "Lender").
A. To provide the Company with additional resources to conduct its
business, the Lender is willing to make loans (the "Loans") to the
Company from time to time, and the Company is willing to borrow from
the Lender, on the terms and subject to the conditions set forth herein
an amount not to exceed an aggregate principal amount of Seventy
Thousand Dollars.
Now therefore, in consideration of the mutual covenants and promises herein
contained and other good and valuable consideration, the Company and the
Executive hereby agree as follows:
1. As of August 31, 2004:
a. the Company had received loans from Green in the
amount of $8,747.19;
x. Xxxxx had received a loan from the Company in the
amount of $720 so that the net loan amount received
from Green was $8,200.37;
c. The Company had received loans from the Lender in the
amount of $13,040.13.
2. The parties agree that the net amount owed to Green and the
Lender shall be converted to a loan owed solely to the Lender
by the Company in the amount of $21,240.50.
3. In addition to the amount loaned, the Lender agrees to make
loans to the Company from time to time as requested in writing
by the Company up to an aggregate amount of Seventy Thousand
Dollars, so long as the request is received in writing prior
to August 31, 2006, and the Company is not in default of any
of its loan repayment obligations.
4. Interest in the amount of 10% annually shall be charged on any
outstanding balance of the monies loaned beginning on
September 1, 2004 and continuing until the loan is paid in
full.
5. The Company shall make payments on the Loan in the amount of
$500.00 monthly beginning on January 1, 2006 and continuing
monthly on the first day of each month until the outstanding
balance, including all interest, is paid in full.
6. The Company shall have the option to pay out the outstanding
balance and interest in full to the Lender at any time without
a penalty.
7. All currency is in US dollars.
In witness whereof this Agreement has been executed by or on behalf of the
parties hereto, as an instrument under seal as of the date first above written.
Sound Revolution Inc.
By: /s/ Xxxxxxx Xxxxxxxxx
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Title: Chief Executive Officer
Bacchus Entertainment Ltd.
By: /s/ Xxxxx Xxxxx
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Title: President
/s/ Xxxxx Xxxxx
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Xxxxx Xxxxx
