Exhibit 10.8






Exhibit 10.8




	 	 	 	 	 
	ANN ARBOR BURGER, INC
	 	HOME CITY FEDERAL SAVINGS BANK OF SPRINGFIELD
	 	Loan Number ________
	THOMAS MICHAEL ANSLEY & THOMAS D. ANSLEY
	 	2454 N. LIMESTONE STREET
	 	Date 06-30-2008
	857 WEST EISENHOWER PARKWAY
	 	P.O. BOX 1288
	 	Maturity Date 12-20-2015
	ANN ARBOR, MI 48103
	 	SPRINGFIELD, OH 45501
	 	Loan Amount $500,000.00
	 
	 	 	 	Renewal Of                     
	BORROWER’S NAME AND ADDRESS
	 	LENDER’S NAME AND ADDRESS	 	 
	“I” includes each borrower above, jointly and severally.
	 	“You” means the lender, its successors and assigns.	 	 






For value received, I promise to pay to you, or your order, or your address listed above the
PRINCIPAL sum of FIVE HUNDRED THOUSAND AND NO/100  Dollars $ 500,000.00



o Single Advance: I will receive all of this principal sum on                     . No
additional advances are contemplated under this note.



þ Multiple Advances: The principal sum shown above is the maximum amount of principal I can
borrower under this note. On 06-30-2008 I will receive the amount of $                      and future
principal advances are contemplated.



Conditions: The conditions for future advances are UPON WRITTEN OR TELEPHONE AUTHORIZATION FROM
THOMAS MICHAEL ANSLEY.





	 	þ	 	Open End Credit: You and I agree that I may borrow up to the maximum amount of principal more than one time. This
feature is subject to all other conditions and expires on 11-01-2008.
	 
	 	o	 	Closed End Credit: You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions).





INTEREST: I agree to pay interest on the outstanding principal balance from 06-30-2008 at the rate of 7.500% per year until 12-20-2015.




	o	 	Variable Rate: This rate may then change as stated below.






o Index Rate: The future rate will be                      the following index rate:                                  
       .




o No Index: The future rate will not be subject to any internal or external index. It will
be entirely in your control.




o
Frequency and Timing: The rate on this note may change as often as                                         .

A change in the interest rate will take effect                                         .




o Limitations: During the term of this loan, the applicable annual interest rate will not be
more than                     % or less than                     %. The rate may not change more than                     % each
                                        .




Effect of Variable Rate: A change in the interest rate will have the following effect on the payments:




o The amount of each scheduled payment will change.           o The amount of this final payment will change.




o                                                                                                                                                
                          .



ACCRUAL METHOD: Interest will be calculated on a PERIODIC basis.



POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after
maturity, and until paid in full, as stated below:




þ on the same fixed or variable rate basis in effect before maturity (as indicated
above).



o at a rate equal to                                                           
                      .



þ LATE CHARGE: If a payment is made more than 15 days after it is due, I agree to
pay a late charge of 5.000% OF THE LATE AMOUNT WITH A MAX OF $50.00.



o ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which o are o
are not included in the principal amount above: 
                                                                       
                                                                             .



PAYMENTS: I agree to pay this note as follows:



MONTHLY PAYMENTS OF ACCRUED INTEREST CALCULATED ON THE AMOUNT OF CREDIT OUTSTANDING BEGINNING ON
07-20-2008. FOLLOWED BY 84 MONTHLY PAYMENTS OF $7,069.14 BEGINNING 01/20/2009.



ADDITIONAL TERMS:



	 	 	 
	 

	 	SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGE 21. I
have received a copy on today’s date.
	 
	 	 
	


þ SECURITY: This
note is separately secured
by (describe separate
document by type and
date): SECURITY AGREEMENT
DATED 06/20/2008 FINANCING
STATEMENTS.


(This
 _____ 

is for your
internal use. Failure to
file a separate security
document does not mean the
agreement will not secure
this note.)

	 	IN THIS NOTICE “YOU” MEANS THE BORROWER:


WARNING: BY SIGNING THIS PAPER YOU GIVE UP
YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU
DO NOT PAY ON DTIME A COURT JUDGMENT MAY BE
TAKEN AGAINST YOU WTIHOUT YOUR PRIOR KNOWLEDGE
AND THE POWERS OF A COURT CAN BE USED TO
COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS
PART TO COMPLY WITH THE AGREEMENT, OR AN OTHER
CLAUSE.






	 	 	 
	PURPOSE: The purpose of
this loan is FUND NEW
RESTAURANT IN ANN ARBOR
MICHIGAN.
	 	 
	 
	 	 
	Signature of Lender:

	 	ANN ARBOR BURGER, INC.
	 
	 	 
	 

	 	/s/ T. Michael Ansley
	 

	 	 
	 

	 	THOMAS MICHAEL ANSLEY, PRESIDENT
	 
	 	 
	/s/ Don E. Lynam

	 	/s/ T. Michael Ansley
	 

	 	 
	DON E. LYNAM, EXECUTIVE VICE PRESIDENT

	 	THOMAS MICHAEL ANSLEY, INDIVIDUALLY
	 
	 	 
	 

	 	 
	 

	 	THOMAS D. ANSLEY, INDIVIDUALLY






 


 









 





DEFINITIONS:
As used on page 1, “þ” means the terms that apply to this loan, “I”, “me” or
“my” means each Borrower who signs this note and each other person or legal entity (including
guarantors, endorsers, and sureties) who agree to pay this note (together referred to as “us”)
“You” or “your” means the Lender and its successors and assigns.



APPLICABLE LAW: The laws of the state of Ohio will govern this note. Any terms of this note which
is contrary to applicable law will not be effective, unless the law permits and you and me to agree
to such a variation. If any provision of this agreement cannot be enforced according to its terms,
this fact will not affect the enforceability of the remainder of this agreement. No modification of
this agreement may be made without your express written consent. Time is of the essence in this
agreement.



COMMISSIONS OR OTHER REMUNERATION: I understand and agree that any insurance premiums paid to
insurance companies as part of this note will involve money retained by you or paid back to you as
commissions or other remuneration.



In addition, I understand and agree that some other payments to third parties as part of this
note may also involve money retained by you or paid back to you as commissions or other
remuneration.



PAYMENTS: Each payment I make on this note will first reduce the amount I owe you for charges which
are neither interest nor principal. The remainder of each payment will then reduce accrued unpaid
interest, and then unpaid principal. If you and I agree to a different application of payments, we
will describe our agreement on this note. I may prepay a part of, or the entire balance of this
loan without penalty unless we specify to the contrary on this note. Any partial prepayment will
not excuse or, reduce any later scheduled payment until this note is paid in full (unless, when I
make the prepayment, you and I agree in writing to the contrary).



INTEREST: Interest accrues on the principal remaining unpaid from time to time, until paid in full.
If I receive the principal in more than one advance, each advance will start to earn interest only
when I receive the advance. The interest rate in affect on this note at any given time will apply
to the entire principal advance at that time. Notwithstanding anything to the contrary, I do not
agree to pay and you do not intend to charge any rate of interest that is higher than the maximum
rate of interest you could charge under applicable law for the extension of credit that is agreed
to have (either before or after maturity). If any notice of interest accrual is sent and is in
error, we mutually agree to correct it, and if you actually collect more interest than allowed by
law and this agreement, you agree to refund it to me.



INDEX RATE: The index will serve only as a device for setting the rate on this note. You do not
guarantee by selecting this index, or the margin, that the rate on this note will be the same rate
you charge on any other loans or class of loans to me or other borrowers.



ACCRUAL METHOD: The amount of interest that I will pay on this loan will be calculated using the
interest rate and accrual method stated on page 1 of this note. For the purpose of interest
calculation, the accrual method will determine the number of days in a “year”. If no accrual method
is stated, then you may use any reasonable accrual method for calculating interest.



POST MATURITY RATE: For purposes of deciding when the “Post Maturity Rate” (shown on page 1)
applies, the term “maturity” means the date of the last scheduled payment indicated on page 1 of
this note or the date you accelerate payment on the note, whichever is earlier.



SINGLE ADVANCE LAONS: If this is a single advance loan, you and I expect that you will make only
one advance of principal. However, you may add other amounts to the principal if you make any
payments described in the “PAYMENTS BY LENDER” paragraph below.



MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I except that you will make
more than one advance of principal. If this is closed end credit, then repaying a part of the
principal will not entitle me to additional credit.



PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges I am obligated to pay (such
as property insurance premium(s), then you may treat those payments made by you as advances and add
them to the unpaid principal under this note, or you may demand immediate payment of the charges.



SET-OFF: I agree that you may set off any amount due and payable under this note against any right
I have to receive money from you.



“Right to receive money from you” means:




	(1)	 	any deposit account balance I have with you;
	 
	(2)	 	any money owed to me on an item presented to you or in your possession for collection or
exchange; and
	 
	(3)	 	any repurchase agreement or other nondeposit obligation.





“Any amount due and payable under this note” means the total amount of which you are entitled to
demand payment under the terms of this note at the time you set off. This total includes any
balance the due date for which you properly accelerate under this note.



If my right to receive any money from you is also owned by someone who is not agreed to pay this
note, your right of set-off does not apply to any account or other obligation where my rights are
only as a representative. It does not apply to any individual Retirement Account or other
tax-deferred retirement account.



You will not be liable for the dishonor of any check when the dishonor occurs because you set off
this debt against any of my accounts. I agree to hold you harmless from any such claims arising as
a result of your exercise of your right of set-off.



REAL ESTATE OR RESIDENCE SECURITY: If this note is secured by real estate or a residence that is
personal property, the existence of a default and your remedies for such a default will be
determined by applicable law, by the terms of any separate instrument creating the security
interest and, to the extent not prohibited by law and not contrary to the terms of the separate
security instrument, by the “Default” and “Remedies” paragraphs herein.



DEFAULT: I will be in default if any one or more of the following occur: (1) I fail to make a
payment on time or in the amount due; (2) I fail to keep the property insured, if required; (3) I
fail to pay, or keep any promise, on any debt or agreement I have with you; (4) any other creditor
of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared
incompetent, make an assignment for the benefit of creditors, or become insolvent (either because
my liabilities exceed my assets or I am unable to pay my debts as they become due); (6) I make any
written statement or provide any financial information that is untrue or inaccurate at the time it
was provided; (7) I do or fail to do something which causes you to believe that you will have
difficulty colleting the amount I owe you; (8) any collateral securing this note is used in a
manner or for a purpose which threatens confiscation by a legal authority; (9) I change my name or
assume an additional name without first notifying you before making such a change; (10) I fail to
plant, cultivate and harvest crops in due season; (11) any loan proceeds are used for a purpose
that will contribute the excessive erosion at highly erodible land or to the conversion of wetlands
to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G,
Exhibit M.



REMEDIES: If I am in default on this note you have, but are not limited to, the following remedies:




	 	(1)	 	You may demand immediate payment of all I owe you under this note (principal, accrued
unpaid interest and other charges).
	 
	 	(2)	 	You may set off this debt against any right I have to the payment of money from you,
subject to the terms of the “Set-Off” paragraph herein.
	 
	 	(3)	 	You may demand security, additional security, or additional parties to be obligated
to pay this note as a condition for not using any other remedy.
	 
	 	(4)	 	You may refuse to make advances to me or allow purchases on credit by me.
	 
	 	(5)	 	You may use any remedy you have under state or federal law.





By selecting any one or more of these remedies you do not give up your right to later use any other
remedy. By waiting your right to declare an event to be a default, you do not waive your right to
later consider the event as a default if it continues or happens again.



COLLECTION COSTS AND ATTORNEY’S FEES: I agree to pay all costs of collection, replevin or any other
or similar type of cost if I am in default. In addition, if you hire an attorney to collect this
note, I also agree to pay any fee you incur with such attorney plus court costs (except where
prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to
pay the reasonable attorney’s fees and costs you may incur to collect this debt as awarded by any
court exercising jurisdiction under the Bankruptcy Code.



WAIVER: I give you my rights to





	 	(1)	 	demand payment of amounts due (presentment);
	 
	 	(2)	 	obtain official certification of nonpayment (protest); or
	 
	 	(3)	 	give notice that amounts due have not been paid (notice of dishonor).
	 
	 	(4)	 	I waive any defenses I have based on suretyship or impairment of collateral.





OBLIGATIONS INDEPENDENT: I understand that I must pay this note event if someone else has also
agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement). You
may sue me alone, or anyone else who is, obligated on this note, or any number of us together, to
collect this note. You may do so without any notice that it has not been paid (notice of dishonor).
You may without notice release any party to this agreement without releasing any other party. If
you give up any of your rights, with or without notice, it will not affect my duty to pay this
note. Any extension of new credit to any of us, or renewal of this note by all or less than all of
us will not release me from my duty to pay it. (Of course, you are entitled to only one payment in
full.) I agree that you may at your option extend this note or the debt represented by this note,
or any portion of the note or debt, from time to time without limit or notice and for any term
without effecting my liability for payment of the note. I will not assign my obligation under this
agreement without your prior written approval.



FINANCIAL INFORMATION: I agree to provide you, upon request, any financial statement or information
you may deem necessary. I warrant that the financial statements and information I provide to you
are or will be accurate, correct and complete.



NOTICE: Unless otherwise required by law, any notice to me shall be given by delivering it or by
mailing it by first class mail addressed to me at my last known address. My current address is on
page 1. I agree to inform you in writing of any change in my address. I will give any notice to you
by mailing it first class to your address stated on page 1 of this agreement, or to any other
address that you have designated.



CONFESSION OF JUDGMENT: In addition to your remedies listed herein, I authorize any attorney to
appear in a court of record and confess judgment, without process, against me, in favor of you, for
any sum unpaid and due on this note, together with costs of suit.


 


 









 







	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	BORROWER’S	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DATE OF	 	PRINCIPAL	 	 	INITIALS (NOT	 	 	PRINCIPAL	 	 	PRINCIPAL	 	 	 	 	 	 	INTEREST	 	 	INTEREST PAID	 
	TRANSACTION	 	ADVANCE	 	 	REQUIRED)	 	 	PAYMENTS	 	 	BALANCE	 	 	INTEREST RATE	 	 	PAYMENTS	 	 	THROUGH:	 
	 
	 	$	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	  	%	 	$	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	$	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	$