Document:

20120405Exhibit103FormofDirectorRestrictedStockAwardAgreement

FEDERAL AGRICULTURAL MORTGAGE CORPORATION 
2008 OMNIBUS INCENTIVE PLAN
FORM OF RESTRICTED STOCK AGREEMENT (DIRECTORS)

THIS AGREEMENT (the “Agreement”), effective as of [DATE] (the “Grant Date”), between Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the United States and an institution of the Farm Credit System (the “Company”), and [DIRECTOR NAME] (the “Participant”).  
WHEREAS, the Participant is a Director of the Company and its Subsidiaries and pursuant to the terms of the Company’s 2008 Omnibus Incentive Plan (the “Plan”), the Company desires to provide the Participant with an incentive to remain a Director of the Company and to align the Participant’s interests with the interests of the Company’s stockholders.
NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto agree as follows:
1.    Definitions.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan.  
2.    Grant of Restricted Stock.  Subject to the terms and conditions contained herein and in the Plan, the Company hereby grants to the Participant [ # ] shares of Restricted Stock.  
3.    Vesting and Settlement of the Restricted Stock.  The Restricted Stock shall vest if the Participant remains a Director of the Company on [DATE] (the “Vesting Date”).  Issuance of Shares in respect of the shares of Restricted Stock that have vested shall be made to the Participant as soon as administratively practicable following the Vesting Date.  A certificate evidencing the appropriate number of Shares shall be issued in the name of the Participant as soon as practicable following the Vesting Date.  A certificate may also be issued through the Deposit\Withdrawal at Custodian (DWAC), the automated system for deposits and withdrawals of securities from the Depository Trust Company (DTC).   
4.    Termination of Service.  
a.    Death; Disability.  If, after the Grant Date and prior to the Vesting Date (the “Restricted Period”), the Participant ceases to be a Director of the Company due to the Participant’s death or Disability, the Restricted Stock shall immediately vest proportionately to the date of death or Disability and be settled in Shares.  
b.    Other Terminations of Service.  If the Participant ceases to be a Director of the Company without cause during the Restricted Period, including due to his or her removal or replacement as a Director by the President of the United States, the Restricted Stock shall immediately vest proportionately to the date Director ceases to be a director and be settled in Shares.

c.    For Cause Terminations of Service.  If the Participant ceases to be a Director of the Company during the Restricted Period for cause, all unvested Restricted Stock shall be cancelled immediately and the Participant will have no rights with respect to the cancelled Restricted Stock.  
5.    Incorporation of Plan Terms.  This Agreement sets forth the general terms and conditions of the Restricted Stock granted on the Grant Date.  This Agreement and the Restricted Stock shall be subject to the Plan, the terms of which are hereby incorporated herein by reference.  A copy of the Plan is available on the Company’s intranet or may be obtained by contacting the General Counsel at Federal Agricultural Mortgage Corporation, 1999 K Street, N.W., 4th Floor, Washington, D.C., 20006.  In the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern unless the Plan specifically contemplates different terms being provided for in the Agreement.  By accepting the Restricted Stock the Participant acknowledges receipt of the Plan (in written or electronic form) and represents that he or she is familiar with its terms and provisions and hereby accepts the Restricted Stock subject to all of the terms and provisions of the Plan and all interpretations, amendments, rules and regulations which may, from time to time, be promulgated and adopted pursuant to the Plan.  If the Participant receives or has received any other award under the Plan or any other equity compensation plan for any year, it shall be governed by the terms of the applicable award agreement, which may be different from those set forth herein. 
6.    Restrictions on Transfer of Restricted Stock.  The Restricted Stock may not be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of to any third party without prior written consent of the Company except by will or the laws of descent and distribution or pursuant to a domestic relations order and during the Participant’s lifetime, the Shares with respect to the Restricted Stock shall be issued only to the Participant or his or her legal guardian or representative.  Notwithstanding the foregoing, the Committee may, in its sole discretion and subject to the terms and conditions it establishes from time to time, authorize the Participant to transfer the Restricted Stock to the Participant’s employer as provided in Section 7 hereof or to one or more Immediate Family Members (or to trusts, partnerships, or limited liability companies established exclusively for Immediate Family Members) provided that there is no consideration for such transfer.  Any attempt to assign, transfer, pledge, hypothecate or otherwise dispose of the Restricted Stock contrary to the provisions of the Plan or this Agreement shall be null and void and without effect.  Immediate Family Member” shall mean the Participant’s children, stepchildren, grandchildren, parents, stepparents, grandparents, spouse, siblings (including half‐brother and sisters), in-laws and persons related by reason of legal adoption.  The Committee may cause a legend or legends to be put on certificates representing the Shares to make appropriate reference to the transfer restrictions under this Section 6.
7.    Rights as a Stockholder.  During the Restricted Period, the Participant shall have all of the rights and privileges of a stockholder as to his or her Restricted Stock, other than the ability to transfer it (except for transfers to the Participant’s employer that are required by the terms of his or her employment), including the right to receive any cash or stock dividends declared with respect to the stock, except that, in the event of any cash or stock dividend, such dividend payment shall be deferred and shall be subject to the same vesting and other provisions 

as the originally awarded Restricted Stock with no dividend payments made on any shares of Restricted Stock that do not vest.  
8.    Entire Agreement.  This Agreement and the Plan constitute the entire agreement and understanding between the parties with regard to the subject matter hereof.  They supersede all other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the Restricted Stock granted pursuant to this Agreement.  By accepting the Restricted Stock, the Participant shall be deemed to accept all of the terms and conditions of the Plan and this Agreement.  
9.    Amendments.  The Committee shall have the power to alter, amend, modify or terminate the Plan or this Agreement at any time; provided, however, that no such termination, amendment or modification may adversely affect, in any material respect, the Participant’s rights under this Agreement without the Participant’s consent.  Notwithstanding the foregoing, the Company shall have broad authority to amend this Agreement without the consent of the Participant to the extent it deems necessary or desirable (i) to comply with or take into account changes in or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations, (ii) to take into account unusual or nonrecurring events or market conditions, or (iii) to take into account significant acquisitions or dispositions of assets or other property by the Company. Any amendment, modification or termination shall, upon adoption, become and be binding on all persons affected thereby without requirement for consent or other action with respect thereto by any such person.  The Committee shall give written notice to the Participant in accordance with Section 12(h) of any such amendment, modification or termination as promptly as practicable after the adoption thereof.  The foregoing shall not restrict the ability of the Participant and the Company by mutual consent to alter or amend the terms of the Restricted Stock in any manner that is consistent with the Plan and approved by the Committee.
10.    Adjustments.  Notwithstanding anything to the contrary contained herein,  the Committee will make or provide for such adjustments to the Restricted Stock as are equitably required to prevent dilution or enlargement of the rights of the Participant that would otherwise result from (a) any stock dividend, extraordinary dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (b) any change of control, merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, or issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for the Award such alternative consideration (including, without limitation, cash or other equity awards), if any, as it may determine to be equitable in the circumstances and may require in connection therewith the surrender of the Restricted Stock. 
11.    Listing.  Notwithstanding anything to the contrary contained herein, the Restricted Stock may not vest, and the Shares issued with respect to the Restricted Stock may not be purchased, sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered in any way, unless such transaction is in compliance with (a) the requirements of 

any securities exchange, securities association, market system or quotation system on which securities of the Company of the same class as the Shares are then traded or quoted, (b) any restrictions on transfer imposed by the Company’s charter legislation or bylaws, and (c) any policy or procedure the Company has adopted with respect to the trading of its securities, in each case as in effect on the date of the intended transaction.  
12.    Miscellaneous.  
a.No Right to Future Grants.  The Restricted Stock are discretionary awards.  Neither the Plan nor the grant of the Restricted Stock or any other awards confers on the Participant any right or entitlement to receive another award under the Plan or any other plan at any time in the future or with respect to any future period.
b.No Right of Continued Service.  Nothing in the Plan or this Agreement shall interfere with or limit in any way the right of the Company or its Subsidiaries to terminate the Participant’s service on the Board at any time or for any reason not prohibited by law, nor confer upon the Participant any right to continue his service as a Director for any specified period of time. 
c.Assignment.  The Participant may not assign any of his or her rights hereunder except as permitted by the Plan, as provided in Section 7 hereof or by will or the laws of descent and distribution.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the heirs and permitted successors and assigns of such party.  All agreements herein by or on behalf of Company, or by or on behalf of the Participant, shall bind and inure to the benefit of the heirs and permitted successors and assigns of such parties hereto.  Company shall have the right to assign any of its rights and to delegate any of its duties under this Agreement to any of its Subsidiaries or affiliates.
d.Tax Withholding.  The vesting of the Restricted Stock will require the Participant to satisfy all applicable federal, state, local and foreign taxes.  
e.Severability.  In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality shall not affect the remaining parts of this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. 
f.Waiver.  The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.
g.Headings.  The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of this Agreement.  

h.Notices.  Any notice required by the terms of the Plan or this Agreement shall be given in writing and shall be deemed effective upon personal delivery, sending or posting of electronic communications or upon deposit in the mail, by registered or certified mail.  Notice to the Company shall be delivered to:
General Counsel
Federal Agricultural Mortgage Corporation
1999 K Street, N.W., 4th Floor
Washington, DC 20006
Notice to the Participant shall be delivered at either (i) the address that most recently provided to the Company or (ii) by Company email, Company intranet postings or other electronic means that are generally used for Company employee communications. 
i.No Advice.  Nothing in the Plan or this Agreement should be construed as providing the Participant with financial, tax, legal or other advice with respect to the Restricted Stock.  The Company recommends that the Participant consult with his or her financial, tax, legal and other advisors to provide advice in connection with the Restricted Stock. 
j.Governing Law.  This Agreement shall be governed by and construed in accordance with federal law.  To the extent federal law incorporates state law, that state law shall be the laws of the District of Columbia excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan or this Agreement to the substantive law of another jurisdiction.  By accepting the Restricted Stock the Participant hereby submits to the exclusive jurisdiction and venue of the federal courts in the District of Columbia, to resolve any and all issues that may arise out of or relate to the Plan or this Agreement.  
    

IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the Date of Award.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

		
	By:
	______________________         
Name:  
Title:    
 
 
 
                         
Participant’s Nameform8k040112ex10-1.htm

WORKING CAPITAL LOAN AGREEMENT

THIS WORKING CAPITAL LOAN AGREEMENT made as of April 1st , 2012 by and between POSTAL CAPITAL FUNDING LLC, a private capital funding company, having an office located at 6725 NW 122nd Ave, Parkland, Florida 33076 (hereinafter referred to as the "PCF" or "Secured Party"), CHDT CORPORATION, a Florida corporation having its principal and chief executive office at 350 Jim Moran Blvd., Deerfield Beach, Florida 33442 (hereinafter referred to as the "Borrower" or "Debtor"),
CHDT CORPORATION, a Florida corporation, with offices located at 350 Jim Moran Blvd., Deerfield Beach, Florida 33442 (the “Entity Guarantor).

W I T N E S S E T H:

WHEREAS, the Borrower desires that PCF + provide and extend a line of credit to the Borrower, and the PCF has agreed to make such extensions of credit upon certain terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises and mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.  DEFINITIONS AND TERMS

1.1           Defined Terms.   As used in this Agreement, the following words and terms shall have the following meanings:

"Advances" shall mean any monies advanced, loans made, or credit extended to Borrower by PCF hereunder.

"Agreement" shall mean this Working Capital Loan Agreement.

"PCF" shall mean POSTAL CAPITAL FUNDING, its affiliates and subsidiaries, and all successors and assigns thereof (also referred to as "Secured Party" and "Lender").

"Borrower" shall mean CHDT CORPORATION., and any other Person designated or signing this Agreement as Borrower, together with all successors and assigns thereof (also referred to herein as "Debtor" and "Obligor").

  

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"Change of Control" shall mean the occurrence of any event (whether in one or more transactions) which results in a transfer of control of Borrower to a Person who is not an Owner of Borrower, or any merger or consolidation of or with Borrower, or any sale of all or substantially all of the property or assets of Borrower. For purposes of this definition, "control of Borrower" shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of Borrower whether by contract or otherwise.

"Debtor" shall mean the Borrower.

"Default" shall mean that an Event of Default (as defined herein) has occurred, the giving of notice, the lapse of time, or both, has occurred, and such Event of Default has continued beyond any permitted cure period.

"Default Rate" shall mean the increased rate of interest chargeable by the Bank if a Default has occurred and as specified in Section 2 of this Agreement.

"Event of Default" shall mean any of the events specified in this Agreement as constituting an Event of Default whether or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

"GAAP" shall mean the Generally Accepted Accounting Principles in the United States of America as in effect from time to time.

"Guarantor(s)" shall mean CHDT CORPORATION (the "Entity Guarantor"),

"Line of Credit" shall mean the revolving line of credit established for the benefit of the Borrower having a maximum principal amount of $1,000,000.00, the proceeds of which are to be used for working capital needs of the Borrower.

"Loan" shall mean any Advance or extension of credit made by PCF to the benefit of the Borrower.

"Loan Facility" shall mean the Line of Credit.

"Loan Documents" shall collectively mean this Agreement and documents executed in connection herewith.

"Material Adverse Effect" shall mean a material adverse effect with respect to (a) the business, assets, properties, financial condition, stockholders' equity, contingent liabilities, prospects, material agreements or results of operations of Borrower, or (b) Borrower's ability to pay the Obligations in accordance with the terms hereof.

  

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"Material Default With Third Party" shall mean a default under any material Indebtedness or other material obligations of any Obligor to any third party that entitles such third party to declare such Indebtedness or obligation due prior to its date of maturity.

"Maturity Date" shall mean the date on which the Loan Facility matures and comes due. In the case of the Line of Credit, the initial term shall be one (1) year (the "Initial Term"), and the Maturity Date of the Initial Term shall mean April 1, 2013.  The Maturity Date for the Loan Facility shall be extended as provided for in this Agreement, with each renewal term ("Renewal Term") having its corresponding later Maturity Date.

"Maximum Revolving Advance Amount" shall mean $1,000, 000.00.

“Obligations" shall mean any and all loans, Advances, debts, liabilities, obligations,  owing by Borrower to PCF or to any other direct or indirect subsidiary or affiliate of PCF of any kind or nature, present or future (including, without limitation, any interest accruing thereon after maturity, or after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding).

"Obligor" shall mean each Borrower , together with all successors and assigns, and in addition, if an individual, all heirs, executors, administrators, and personal representatives thereof

"Revolving Credit Loans" shall mean Advances made directly to the Borrower from the Line of Credit.

"Subsidiary" shall mean, as to any Person, a corporation or other entity of whose shares of stock or other ownership interests having ordinary voting power to elect a majority of the directors of such corporation or entity, or other Persons performing similar functions for such entity, are owned, directly or indirectly, by such Person.

"UCC" shall mean the Uniform Commercial Code as in effect in the State of New York, and Article 9 of the Uniform Commercial Code as in effect in the state of formation of any entity which is a party to this Agreement.

  

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SECTION 1. LOAN FACILITY

1.1           In accordance with the Loan Agreement, PCF hereby establishes for the benefit of the Borrower the following Loan Facility: the Line of Credit.

1.2           Subject to the terms and conditions set forth in this Agreement, and provided that Borrower is not in Default thereunder, PCF agrees that it shall, from time to time and in its sole and absolute discretion, make Loans to Borrower from its Loan Facility which PCF deems warranted by the facts and circumstances existing at the time of each request by Borrower. Each request by Borrower for a Loan Advance as well as each such Loan to be made by PCF shall constitute a representation by Borrower that all conditions set forth in the Loan Documents on the part of Borrower have been satisfied on the date of such request.

1.3           Borrower may request Advances from the Line of Credit, and Borrower shall be authorized to make such borrowings, repay same in whole or in part, and reborrow on a revolving basis (the "Revolving Credit Loans"). At the time of each Revolving Credit Loan made pursuant to this Agreement, Borrower shall immediately become indebted to PCF  for the amount of each such Loan Advance. PCF agrees to make Advances to Borrower from time to time in PCF’s sole and absolute discretion up to Borrower's Availability and subject to the Loan Documents.

1.4           A request for an Advance must be received by the PCF no later than 11:00 A.M. on a Business Day for the Advance to be made effective as of such Business Day. If such request is received by PCF after said time, the Advance shall be made effective as of the next Business Day. Requests shall be made by Email Request to  PCF at the email address provided to the Borrower by PCF.

1.5           Borrower shall be obligated to pay to PCF interest upon the unpaid principal balance of Borrower's Revolving Credit Loans calculated at the close of each day, and payable on a quarterly basis. The interest rate which shall be used to calculate the amount of interest due each day shall be eight percent (8%) per annum (the "Contract Rate"). Interest at the rate set forth herein shall be charged on all sums due to PCF even after a Default or the entry of judgment. All computations of interest shall be made on the basis of a three hundred sixty five (365) day year and the actual number of days elapsed.

1.6           All payments shall be made by Borrower to PCF at the office of PCF as appears in this Agreement, or such other place as PCF may from time to time specify, in lawful currency of the United States of America in immediately available funds, without counterclaim or set off and free and clear of, and without any deduction or withholding for, any taxes or other payments.

  

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1.7           If a Maturity Date shall fall on a day, or any payment hereunder becomes due on a day, which is not a Business Day, the due date for payment hereunder shall be extended to the next succeeding Business Day, and such extension of time shall be included in computing interest and fees in connection with such payment.

1.8           Anything to the contrary notwithstanding, on the Maturity Date the Loan Facility shall terminate, and there shall be due and payable all unpaid principal together with all accrued and unpaid interest, and all other sums computed in accordance with this Agreement.

1.9           PCF may, without notice to or consent of any party liable under the Loan Documents in any capacity whatsoever and without impairing or in anywise affecting the liability of such party to PCF, (i) extend the time for any payment under the Loan Documents; (ii) alter any other term of Loan Documents by agreement with the Borrower; (iii) release, settle or compromise with any other party liable for any payment under the Loan Documents.

1.10           If Obligations become immediately due and payable pursuant to the provisions of this Agreement, or if Obligations are not paid in full upon the effective date of termination of this Agreement or upon a maturity date, or if an Event of Default has occurred, Borrower shall thereafter be obligated to pay interest on the Obligations from the date of such declaration, termination, maturity or Event of Default, as the case may be at the option of PCF, until the date the Obligations are paid in full at a rate per annum (calculated on the actual number of days based upon a year of 365 days) equal to 1% in excess of the Contract Rate then in effect. The
Borrower acknowledges that:(i) such additional rate is a material inducement to PCF to make Loans hereunder; (ii) PCF would not have entered into the Loan Documents and agreed to make Loans hereunder in the absence of the agreement of the Borrower to pay such additional rate; (iii) such additional rate represents compensation for increased risk to PCF that the Loans hereunder will not be repaid; and (iv) such rate is not a penalty and represents a reasonable estimate of (a) the cost to PCF in allocating its resources (both personnel and financial) to the on-going review, monitoring, administration and collection of the Loans, and (b) compensation to PCF for losses that are difficult to ascertain.

1.11           Borrower and each Guarantor hereby grants to PCF, a continuing lien security interest and right of set off as security for all liabilities and obligations to PCF whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession of Borrower.

  

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1.12           Borrower shall pay on demand all expenses of PCF in connection with the preparation, administration default, collection, waiver or amendment of loan terms or in connection with PCF’s exercise, preservation or enforcement of any of its rights, remedies or options hereunder, including, without limitation, reasonable fees of outside legal counsel or the allocated reasonable costs of in-house legal counsel, accounting, consulting, brokerage or other similar professional fees or expenses, and any reasonable fees or expenses associated with travel or other costs relating to any appraisals or examinations conducted in connection with the loan or
any collateral therefor, and the amount of all such expenses shall, until paid, bear interest at the rate applicable to principal hereunder (including any default rate) and be an obligation secured by any Collateral.

1.13           This Agreement shall become effective the day when finally accepted by PCF. This Agreement shall remain in effect until the Maturity Date of the Initial Term, and shall thereafter be  renewed by mutual agreements of both parties for a successive term of  one (1) year each (each renewed term being a "Renewal Term"); subject, however, to the right of either party to terminate a Renewal Term at any time upon at least ninety (90) days' written notice. Should an Event of Default as defined hereunder have occurred and be continuing, the Initial Term or any Renewal Term
shall be terminable at any time by PCF forthwith on written notice. The termination of the Initial Term or any Renewal Term shall not affect any of a Borrower's  obligations under the Loan Documents, which shall remain in full force and effect until all Obligations have been satisfied in full and until discharged by PCF.

SECTION 2.  SECURITY; GUARANTEE;

2.1           Guarantees.  All of the Obligations are hereby unconditionally and absolutely guaranteed by the debtor.

SECTION 3.  REPRESENTATIONS AND WARRANTIES

In order to induce PCF to enter into this Agreement and, among other things, make Advances from the Loan Facility, the Borrower hereby represents, warrants, covenants and agrees as follows:

3.1           The Borrower is presently in a financial condition which will enable it to fulfill all of its obligations under the Loan Documents.

3.2           The Borrower covenants with PCF as follows: (a) without providing at least 30 days prior written notice to PCF, the Borrower will not change its name, its place of business or, if more than one, chief executive office, or its mailing address or organizational identification number if it has one, and (b) the Borrower will not change its type of organization, jurisdiction of organization or other legal structure.

  

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3.3           Borrower was duly formed and is in good standing under the laws of the state of its formation, and utilizes no names other than as set forth in this Agreement. Borrower  has all requisite power and authority (i) to execute and deliver the Loan Documents, and to consummate the transactions and perform its obligations thereunder; (ii) to own and operate its properties and assets and to carry on the business now conducted or as now contemplated; and (iii) is qualified or authorized to do business and is in good standing in all jurisdictions wherein the character of the property owned or the nature of the business conducted by Borrower
makes such qualification or authorization necessary.

3.4           There is no known claim, loss, contingency, investigation, whether or not pending, threatened or imminent against or otherwise affecting Borrower that involves the possibility of any liability not fully covered by insurance or that may result in a Material Adverse Effect in the business, properties, or condition of Borrower, or which may result in an adverse change in the ability of Borrower to fully perform under the Loan Documents.

3.5           There is no litigation, arbitration or proceeding before any court, arbitrator or governmental authority currently pending, nor, to the knowledge of Borrower, threatened, against the Borrower or any of its properties and revenues, which, if adversely determined, would materially adversely affect the business, operations, financial condition or results of operations of Borrower.

3.6           Neither Borrower is in default in any material respect in the payment or performance of any of its obligations or in the performance of any mortgage, indenture lease, contract or other agreement or undertaking to which it is a party or by which it or any of its properties or assets may be bound, and no default thereunder has occurred and is continuing.  Neither Borrower is in default under any order, award or decree of any court, arbitrator, or governmental authority binding upon or affecting it or by which any of its properties or assets may be bound or affected, and no such order, award or decree, if any, materially adversely affects
the ability of Borrower to carry on its business as presently conducted or to perform its obligations under the Loan Documents.

3.7           Borrower is solvent, has capital sufficient to carry on its business and all businesses in which it is about to engage, and (i) as of the date of this Agreement, the fair present saleable value of its assets, calculated on a going concern basis, is in excess of the amount of its liabilities and (ii) subsequent to the date of this Agreement, the fair saleable value of its assets (calculated on a going concern basis) will be in excess of the amount of its liabilities.

  

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SECTION 4. CLOSING AND CONDITIONS PRECEDENT TO ADVANCES

Closing under this Agreement is subject to the following conditions precedent (all instruments, documents and agreements to be in form and substance satisfactory to PCF):

4.1           Officer Certification: By execution of this Agreement, the officer or manager signing this Agreement on behalf of Borrower certifies to the PCF as follows as of the date of this Agreement:

a. there has not occurred any material adverse change in the operations and condition (financial or otherwise) of Borrower.

b. all warranties and representations contained in this Agreement are true and correct in all respects on the date of this Agreement; and

c. all requirements on the part of Borrower  under the Loan Documents as of the Closing Date have been satisfied.

SECTION 5. DEFAULT AND REMEDIES

5.1           Events of Default.  Any one or more of the following events shall constitute an Event of Default hereunder

(a)           Any representation, warranty or statement made by or on behalf of Borrower, or in any report, certificate, financial statement or other instrument furnished to the PCF in connection with the Loan Documents shall prove to be inaccurate, false or misleading in any material respect as of the date with respect to which it was made or deemed to be made;

(b)           Borrower shall have failed to make any payment under the Loan Documents when due and such default or breach is not cured in five (15) days from the due date of such payment;

(c)           The Borrower shall have failed to duly observe or perform any covenant, condition or agreement on the part of the Borrower  to be observed or performed pursuant to the terms of the Loan Documents and such failure clearly and substantially increases the risk of non-payment to the Lender;

 

 

(d)           Borrower shall have applied for or consented to the appointment of a custodian, receiver, fiscal agent, trustee or liquidator of all or a substantial part of its assets; shall have made an arrangement with, or an assignment for the benefit of, its creditors; shall have filed a voluntary petition in bankruptcy, or sought dissolution or reorganization under any law; or shall have filed an answer admitting the material allegations of a bankruptcy or reorganization petition;

  

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(e)           Borrower shall have a custodian, receiver, fiscal agent, trustee or liquidator appointed without its consent for all or a substantial part of its assets; shall have an involuntary petition filed against it in bankruptcy for dissolution or reorganization; or shall have been adjudicated a bankrupt or had a plan of reorganization submitted by any creditor or committee approved; provided, however, that such Event of Default shall be subject to cure by Borrower within thirty (30) days of the occurrence of such Event of Default if any such appointment, petition, adjudication or submission is terminated,  dismissed, or withdrawn;

(f)           If Borrower dissolves, liquidates or ceases operations;

(g)           If a Change of Control occurs; 

(h)           If Borrower shall not be paying its debts as they become due in the ordinary course of business; admits its inability to pay its debts as they become due; becomes insolvent, however otherwise evidenced; or if Borrower ceases to conduct business in the ordinary course and in all such instances the deficiency in question continues for more than 20 days;

The occurrence of an Event of Default under this Agreement and the continuance thereof beyond any permitted cure period shall also constitute a default under each of the Loan Documents and under any other instrument, document or agreement executed at any time by Borrower in favor of PCF.

6.1           Remedies.  Upon the occurrence of a Default, the PCF may take one or more of the following remedial steps:

(a)           Declare the entire unpaid principal balance together with all accrued and unpaid interest, charges and expenses under the Loan Documents to be due and payable forthwith, whereupon the Loan Documents shall become forthwith due and payable as to principal, interest, charges and expenses and all other sums due thereunder, without presentment, demand, protest, or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the Loan Documents or any note to the contrary notwithstanding;

(b)           PCF shall be authorized to collect interest on any overdue principal, interest and other sums owing under the Loan Documents at the highest rate set forth in the Loan Documents or at the Default Rate, at the option of the PCF;

(c)           Take any action at law or in equity to collect the payments then due and thereafter to become due under the Loan Documents or to enforce performance and observance of any obligation, agreement or covenant of Borrower under the Loan Documents;

  

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(d)           Exercise any and all rights and remedies of a creditor under the Uniform Commercial Code or other applicable law;

(e)           Take such action and institute such proceedings as are authorized by or permitted under the Loan Documents;

6.2           In addition to the above remedies, if a Default under this Agreement has occurred, the PCF shall have the right and remedy, without posting bonds or other security, to have any provision of the Loan Documents specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such Default will cause irreparable injury to PCF and that money damages will not provide an adequate remedy thereto.

SECTION 7. MISCELLANEOUS

7.1           Borrower agrees to pay, reimburse, indemnify and hold harmless, PCF, its directors, officers, employees, agents and representatives from and against any and all actions, costs, damages, disbursements, expenses (including reasonable attorneys' fees), judgments, liabilities, losses, obligations, penalties and suits of any kind or nature whatsoever with respect to: (i) the  administration, enforcement, interpretation, amendment, modification, waiver or consent of any of the Loan Documents; (ii) the exercise of any right or remedy granted in any of the Loan Documents, the collection or enforcement of any of the Obligations and the proof or
allowability of any claim arising under any of the Loan Documents, whether in any bankruptcy or receivership proceeding or otherwise; and (iii) any claim of third parties, and the prosecution or defense thereof, arising out of or in any way connected with any of the Loan Documents or any Collateral.

7.2           This Agreement is solely for the benefit of the parties hereto and their respective successors and assigns, and no other person shall have any right, benefit, priority or interest in, under or because of the existence of, this Agreement.

7.3           In the event of any claim or cause of action relating to or based upon or arising from a breach of this Agreement, then the parties shall seek to privately resolve such claim or cause of action during a period commencing when one party notifies the other party in writing of the existence of a claim or cause of action and ending ten (10) days after the delivery of such written notice.  Neither party shall commence any legal or other proceedings until the expiration of said ten day private resolution effort.

  

10

  

IN WITNESS WHEREOF, the parties hereto have duly executed this agreement under seal as of the day and year first above written.

WITNESS OR ATTEST:

	  	
Borrower:

	  	
CHDT Corp, Inc.

	  	  
	  	  
	
By:_Jill R. Mohler__________

	
By:_/s/ Stewart Wallach__________

	
Name: Jill R. Mohler

	
Name:  Stewart Wallach

	
Title: Corporate Secretary, CHDT

	
Title: CEO

	  	  
	  	  
	  	
POSTAL CAPITAL FUNDING LLC

	  	  
	  	  
	
_Jill R. Mohler_____________

	
By_/s/ Jeff Postal_______________

	  	
Name:  Jeff Postal

	  	
Title:  Member

	  	  
	  	  
	  	
POSTAL CAPITAL FUNDING LLC

	  	  
	  	  
	
_Jill R. Mohler_____________

	
By_James G. McClinton___________

	  	
Name:  James G. McClinton

	  	
Title:  Member

11

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