EXHIBIT 10.87
SEDONA CORPORATION
TERMS AND CONDITIONS
LINE OF CREDIT
REVOLVING PROMISSORY NOTE
IN THE PRINCIPAL AMOUNT OF $500,000.00
OFFERING: This agreement, together with: (i) the
Revolving Promissory Note in the principal
amount of $500,000.00 from Sedona Corporation
(the "Company") to Xxxxx X. Xxx (the "Lender");
(ii) the Security Agreement between the Lender
and the Company; and (iii) the Intercreditor
Agreement between Vey and Oak Harbor Investment
Properties, L.L.C ("Oak Harbor"), all of even
date herewith, set forth the structure, terms
and conditions of the line of credit (the
"Line") made available to the Company by the
Lender, and constitute a binding expression of
the intent of parties hereto.
DESCRIPTION OF THE LINE: The loans provided under the Line will be
evidenced by a Revolving Promissory Note in the
maximum principal sum of $500,000 (the "Note").
Sums due pursuant to the Note will bear
interest at the rate of 8% per annum. The Line
shall be payable by the application of the
proceeds of the accounts receivable of the
Company as and when same are collected by the
Company. Accrued interest on the outstanding
principal balance will be paid quarterly. The
Note will mature on August 17th, 2007 on which
date all unpaid principal and interest will be
due and payable.
Advances under the Line will be made by Xxx in
his discretion. The Company may prepay, in
whole or in part, at any time, any sums
outstanding under the Line without premium or
penalty, and the Company may reborrow on a
revolving basis sums up to the maximum amount
of the Line.
The initial draw shall occur on September 27,
2006 and shall be in the amount of $225,000.00.
UNCOMMITTED LINE: The Company acknowledges and agrees that the
Line is uncommitted and requests for advances
or extensions of credit thereunder shall be
approved in the sole discretion of Vey.
PURPOSE OF THE LINE: The purpose of the Line shall be to support the
working capital needs of the Company.
SECURITY: The Line shall be secured by a subordinate
security interest in the assets of the Company.
DATED: SEPTEMBER 27, 2006
AGREED AND ACCEPTED:
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XXXXX XXX, INVESTOR
SEDONA CORPORATION
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NAME: XXXXX X. XXXXXX
TITLE: PRESIDENT AND CEO
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