Document:

ex101.htm

EXHIBIT 10.1

BALLOON PROMISSORY NOTE

THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, IF WILLING TO LEND YOU THE MONEY (THERE IS NO PROMISE TO SO LEND).  IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY A LOAN PROCESSING FEE IF YOU OBTAIN REFINANCING FROM ___________________.

_______________ _____, 201___                                                                                                                                           

3014 McCulloch Circle, Houston, Texas

	
1.  

	
BORROWER’S PROMISE TO PAY,   In return for the loans Borrower has received,

	
(i)  

	
On _______________ _____, 201___      for  $___________.00

Borrower promises to pay U.S. $___________.00 (this amount is called “principal”), plus interest, to the order of the Lender which is ___________________  Borrower will make all payments under this Note in the form of cash, check, certified funds or money order at the option and direction of Lender. Borrower understands that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the “Note Holder.”

In return for the loan of $___________.00 that Borrower has received, from Lender, Borrower promises to pay U.S. $___________.00 (this amount is called “principal”), plus interest from _______________ _____, 201___, to the order of the Lender which is ___________________. Borrower will make all payments under this Note in the form of cash, check, certified funds or money order at the option and direction of Lender. Borrower understands that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the “Note Holder.”

2. INTEREST

Interest will be charged on unpaid principal until the full amount of principal has been paid. Borrower will pay interest at a yearly rate of 5%. The interest rate required by this Section 2 is the rate Borrower will pay both before and after any default.

3. PAYMENTS

(A) Time and Place of Payments

Borrower will pay principal and interest by making one (1) balloon payment at the day of the maturity of the loan, which is called the “maturity date.” Borrower will make this payment at 3014 McCulloch Circle, Houston, Texas 77056 or at a different place if required by the Note Holder.  The maturity date for this Note at which time all outstanding unpaid principal and accrued interest shall become due and payable is January 9, 201___.

(B) Amount of Maturity Payment

The maturity payment will be in the amount of $__________.00 U.S dollars (unless amounts of principal and interest have been paid previously).

4. BORROWER’S RIGHT TO PREPAY

Borrower has the right to make payments of principal at any time before they are due. A payment of principal only is known as a “prepayment.” Borrower may not designate a payment as a prepayment if Borrower has not made all the monthly payments due under the Note. Borrower may make a full prepayment or partial prepayments without paying a prepayment charge. The Note Holder will use prepayments to reduce the amount of principal that Borrower owes under this Note. However, the Note Holder may apply prepayment to the accrued and unpaid interest on the prepayment amount, before applying prepayment to reduce the principal amount of the Note. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of monthly payments unless the Note Holder agrees in writing to those changes.

 

  

  

  

 

5. OBLIGATIONS OF ENTITIES/PERSONS UNDER THIS NOTE

 

If more than one entity and/or person signs this Note, each entity and/or person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any entity and/or person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any entity and/or person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note.  The Note Holder may enforce its rights under this Note against each entity and/or person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note.

6. WAIVERS

Note Holder and any other entity and/or person who has obligations under this Note waive the rights of presentment and notice of dishonor. “Presentment” means the right to require the Note Holder to demand payment of amounts due. “Notice of dishonor” means the right to require the Note Holder to give notice to other entity and/or persons that amounts due have not been paid.

WITNESS THE HAND(S) OF THE UNDERSIGNED

	
  

	
____________________________________

	 	Borrower:      /s/ Richard J. Church as President for
	 	REO Plus, Inc

 

This written loan agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.

There are no unwritten oral agreements between the parties.

______________________________                                                                           

Signature of Lender –

___________________

_______________________________

Signature of Borrower –

Richard J. Church, President of REO Plus, Inc.ex102.htm

EXHIBIT 10.2

FIRST AMENDMENT TO PROMISSORY NOTES

THIS FIRST AMENDMENT TO PROMISSORY NOTES (the "First Amendment") is made and entered into as of the 5th day of February 2013 by REO Plus, Inc., a Texas corporation (the "Maker”), on the one hand, and Richard J. Church (“Church”) and Akashic Ventures, Inc., a Delaware corporation (“Akashic”), on the other hand.  Each of Church and Akashic is referred to hereinafter singly as a “Payee" and collectively as the "Payees."

RECITALS:

WHEREAS, Maker executed in favor of either of the Payees six promissory notes (collectively, the “Notes”) in the respective original principal amounts and having the respective balloon due dates, each as set forth in the table immediately below; and

	
Original Principal Amount

	
Original Due Date

	
Payee

	
$85,960

	
2/5/13

	
Church

	
$35,000

	
4/30/13

	
Church

	
$40,000

	
9/27/13

	
Church

	
$10,000

	
12/27/13

	
Church

	
$10,000

	
1/9/14

	
Church

	
$20,000

	
2/5/13

	
Akashic

WHEREAS, all outstanding principal of and interest on two of the Notes is becoming due and payable on the date hereof; and

WHEREAS, Maker wishes to receive an extension of the preceding and all other Notes so that all outstanding principal of and interest on each Note will be due and payable exactly three years after the original due date of such Note, and each Payee is willing to so extend the one or more Notes made payable to such Payee; and

WHEREAS, the parties hereto desire to amend the Notes upon the terms, provisions and conditions set forth hereinafter;

 

AGREEMENT:

NOW, THEREFORE, in consideration of (a) the mutual covenants and agreements of the parties hereto to amend the Notes, and (b) other good and valuable consideration (the receipt, sufficiency and adequacy of the consideration recited in (a) and (b) immediately preceding are hereby acknowledged and confessed by each party hereto), the parties hereto hereby agree as follows (all undefined, capitalized terms used herein shall have the meanings assigned to such terms in the Note):

1.           Amendments to the Note.  Each Note is hereby amended so that all outstanding principal of and interest on such Note shall become due and payable in a single balloon payment exactly three years after the original due date of such Note, and provided further that interest shall continue to accrue on each Note at the rate stated in such Note and shall be paid at maturity in an amount calculated in accordance with the interest rate provided therein and not at any set amount stated in such Note calculated based on the original maturity date of such Note.

 

  

  

  

 

2.           Miscellaneous.  Except as otherwise expressly provided herein, the Note is not amended, modified or affected by this First Amendment.  Except as expressly set forth herein, all of the terms, conditions, covenants, representations, warranties and all other provisions of the Note are herein ratified and confirmed and shall remain in full force and effect.  On and after the date on which this First Amendment becomes effective, the terms, "Note," "hereof," "herein," "hereunder" and terms of like import, when used herein or in the Note shall, except where the context otherwise requires, refer to the Note, as amended by this First Amendment.  This First Amendment may be executed into one or more counterparts, and it shall not be necessary that the signatures of all parties hereto be contained on any one counterpart hereof; each counterpart shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the undersigned have set their hands hereunto as of the first date written above.

 

	REO PLUS, INC.,  	Akashic Ventures, Inc.,
	a Texas corporation     	a Delaware corporation
	 	 
	 	 
	By: _____________________________	________________________________
	Richard J. Church, President 	Richard J. Church, President
	 	 
	 	 
	________________________________	 
	Richard J. Church, individually

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