Document:

City of Ames Promissory Note

 Exhibit 10.4 
 DEMAND PROMISSORY NOTE 
  

									
	Amount	  	$50,000	  		  	Date:	  	01/22/2009

 FOR VALUE RECEIVED, the undersigned jointly and severally promise to pay to the order of Ames Chamber of
Commerce / Community Investment Fund, the sum of Fifty thousand dollars ($50,000.00), together with interest of 0% per annum on the unpaid balance. The entire principal and any accrued interest shall
be fully and immediately payable UPON DEMAND of any holder thereof. 
 Upon default in making payment within 30 days of demand, and providing
this note is turned over for collection, the undersigned agree to pay all reasonable legal fees and costs of collection to the extent permitted by law. This note shall take effect as a sealed instrument and be enforced in accordance with the laws of
the State of Iowa. All parties to this note waive presentment, notice of non-payment, protest and notice of protest, and agree to remain fully bound notwithstanding the release of any party, extension or modification of terms, or
discharge of any collateral for this note. 
 NOTICE TO BORROWER: THIS IS A DEMAND NOTE AND SO MAY BE COLLECTED BY THE
LENDER AT ANY TIME. A NEW NOTE MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR LOWER RATE OF INTEREST. 
  

	
	 /s/ Thomas A. Morrow

	[Maker’s signature]
	
	 Thomas A. Morrow, Chairman and CEO
 Home School, Inc.

 NOTICE TO CO-SIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN.
IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. 
  

	
	 /s/ Thomas A. Morrow

	[Co-signer’s signature]
	
	 Thomas A. Morrow, Chairman and CEO
 Home School, Inc.

	
	Witnessed:
	
	 /s/ Daniel A. Culhane

	[Witness’s signature]
	
	 Daniel A. Culhane, President & CEO
 Ames Chamber
of CommerceNorth Loan Document 2008

 Exhibit 10.5 
 Short-term Loan Agreement 
  

							
		 		 		 	 

		 		 		 	Name of Lender

 SHORT-TERM LOAN AGREEMENT 
 THE INDEBTEDNESS EVIDENCED BY THIS AGREEMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. AS AMENDED, OR ANY STATE SECURITIES LAWS, LOANS MADE BY INVESTORS MAY NOT BE TRANSFERRED UNLESS SO REGISTERED
OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. ADDITIONAL RESTRICTIONS ON TRANSFER OF THE DEBT IS SET FORTH IN THIS SHORT-TERM LOAN AGREEMENT AND IN THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM PURSUANT TO WHICH THE FUNDS WILL BE
ISSUED. 
 SHORT-TERM LOAN AGREEMENT 
 SHORT-TERM LOAN AGREEMENT dated January 16, 2008 (this “Agreement”) between Home School, Inc., a Delaware corporation (the “Company”), and the Lender whose name appears on the signature
page hereof (the “Lender”). 
 BACKGROUND 
 Lender desires to lend, and the Company desires to borrow, funds upon the terms and conditions contained herein. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  

	 	1.	LOAN FUNDS. 

 (a) Lender hereby lends to
the borrower the amount of funds (the “Funds”) set forth on the signature page hereof. The minimum loan is $100,000 (one hundred thousand dollars), however, the Company may, in its discretion, accept smaller loans. 
 (b) The Company shall give notice to Lender of the acceptance or rejection of Lender’s loan, in whole or in part. In the event Lender’s loan
or any portion thereof is accepted, the Company shall deliver an executed counterpart of this Agreement indicating the amount of Funds accepted and the date of such acceptance by the Company. In the event Lender’s loan is rejected in full, the
Company shall promptly return this Agreement to the Lender marked “CANCELLED”, and all funds, if any, previously paid by Lender shall promptly be returned to Lender. 
  

	 	2.	TERMS 

 (a) The term of the loan is six
months. 
  

			
	CONFIDENTIAL	 	Loan Agreement

	 	(b)	No prepayment penalty of any kind shall adhere to the Company for early repayment of the loan in whole or in part. 

  

	 	(c)	The interest rate shall be 5% paid monthly for an APR of 60%. 

  

	 	(d)	At Lender’s option, interest may be paid monthly or accrued to the maturity date or early repayment date, whichever comes first. 

  

	 	(e)	At Lender’s option, funds may be converted to equity in lieu of cash repayment at the rate of $6 per share. 

  

	 	3.	REPRESENTATIONS AND WARRANTIES AS TO SUITABILITY STANDARDS. 

 Lender hereby represents and warrants that: 
 (a) Lender has such knowledge and experience in
financial and business matters that Lender is capable of evaluating the merits and risks of the prospective investment in the Company; 
 (b) Lender is making the loan for Lender’s own account, not on behalf of other persons, and for investment and not with a view to sell or distribute; 
 (c) Lender can bear the economic risk of losing Lender’s entire investment; 
 (d)
Lender’s overall commitment to investments which are not readily marketable is not disproportionate to Lender’s net worth. Lender’s investment in the Loan will not cause such overall commitment to become excessive, and the investment
is suitable for Lender when viewed in the light of Lender’s financial situation and needs; 
 (e) Lender has adequate means of
providing for Lender’s current needs and personal contingencies; 
 (f) Lender has evaluated all the risks of investment in the
Company; 
 (g) Lender has experience in making investment decisions of this type; 
 (h) Lender understands the business in which the Company is to be engaged; 
 (i) Lender otherwise meets any special suitability standards applicable to Lender’s state of residence; 
 (j) Lender (or Lender’s authorized representative) is a citizen of the United States, at least eighteen (18) years of age and a bona fide
resident and domiciliary (not a temporary or transient resident) of the state indicated on the signature page hereof and Lender has no present intention of becoming a resident of any other state or jurisdiction; and 
 (k) Lender is an “accredited investor” as such term is defined under the Securities Act of 1933, as amended, by virtue of the fact that it
or he is: 
  

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 Place a check mark next to and initial the appropriate category or categories: 
  

					
	      
	  	1.	    	an insurance company as defined in Section 2(13) of the Securities Act of 1933, as amended;
			
	      
	  	2.	    	a corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring Funds, with total assets in excess of U.S.
$5,000,000;
			
	      
	  	3.	    	a natural person whose net worth (either individually or jointly with spouse) exceeds U.S. $1,000,000 at the time of this subscription;
			
	 X
	  	4.	    	a natural person who had an annual individual income (not joint with spouse) in excess of U.S. $200,000 in each of 2003 and 2004 and reasonably expects such an individual income in excess of
U.S. $200,000 in 2005.
			
	 X
	  	5.	    	a natural person who had an annual joint income with spouse in excess of U.S. $300,000 in each of 2004 and 2005 and reasonably expects such an individual income in excess of U.S. $300,000 in
2006.
			
	      
	  	6.	    	a trust, with total assets in excess of U.S. $5,000,000, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the Securities Act of 1933, as
amended;
			
	      
	  	7.	    	an entity in which all of the equity owners are accredited investors in one or more of the above categories (if this category is checked, attach a list of all equity owners and indicate which
of the above categories each equity owner meets);
			
	      
	  	8.	    	an employee benefit plan (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended), a “plan” (within the meaning of
Section 4975(e) of the Internal Revenue Code of 1986, as amended) or any person whose assets are deemed to be “plan assets” (within the meaning of 29 C.F.R. 1990S) with total assets in excess of U.S. $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons who are accredited investors.

  

	 	4.	TRANSFER RESTRICTIONS. 

 Lender represents
that he understands that the sale or transfer of the Funds are restricted and that: 
 (i) The Funds have not been
registered under the Securities Act of 1933, as amended, or the laws of any other jurisdiction. The Funds cannot be sold or transferred by Lender unless they are subsequently registered under applicable law or an exemption from registration is
available. The Company is not required to register the Funds or to make any exemption from registration available. 
  

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 (ii) There will be no immediate public market for the Loan and Lender may not be able
to sell the Funds. Accordingly, the Lender must bear the economic risk of Lender’s investment for an indefinite period of time. 
 (iii) Lender agrees that he will not sell or offer to sell or transfer the Loan or any part thereof or interest therein without registration under the Securities Act of 1933, as amended, and applicable state
securities laws or unless an exemption from such registration is available. 
  

	 	5.	LENDER’S REPRESENTATIONS AND WARRANTIES. 

 Lender represents and warrants that: 
 (a) Lender has received, has carefully read and understands the Company’s
Confidential Private Placement Memorandum; 
 (b) Lender has been furnished with all additional documents and information which Lender
has requested; 
 (c) Lender has had the opportunity to ask questions of and received answers from the Company concerning the Company
and the Funds and to obtain any additional information necessary to verify the accuracy of the information furnished; 
 (d) Lender
has relied only on the foregoing information and documents in determining to make this subscription; 
 (e) The Memorandum and other
information furnished by the Company do not constitute investment, accounting, legal or tax advice and Lender is relying on professional advisers for such advice; 
 (f) All documents, records and books pertaining to the Lender’s investment have been made available for inspection by the Lender and by the Lender’s attorney, and/or Lender’s accountant, and/or
Company’s Lender representative, and the books and records of the Company will be available, upon reasonable notice, from Lender during reasonable business hours at the Company’s principal place of business; 
 (g) Lender recognizes that an investment in the Loan involves substantial risks, including, but not limited to, those set forth under “Risk
Factors” in the Memorandum; and 
 (h) Lender understands, acknowledges and agrees that the Company is relying upon the
representations and warranties made herein in determining to borrow the Funds. 
  

	 	6	SUBSCRIPTION IRREVOCABLE BY SUBSCRIBER BUT SUBJECT TO ACCEPTANCE OR REJECTION BY THE COMPANY. 

 (a) Except for the limited rights provided to residents of certain States under applicable state laws, this Agreement is not, and shall not be,
revocable by Lender. 
  

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 (b) The Company, in its sole discretion, has the right to accept or reject this loan, in whole or
part, for any reason. 
  

	 	7.	MISCELLANEOUS. 

 (a) This Agreement and
the rights and obligations of the parties hereunder shall be interpreted in accordance with the laws of the State of Delaware without reference to its conflict of law rules. 
 (b) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but the several counterparts together
shall constitute but one and the same instrument. 
 (c) Insofar as possible, each provision of this Agreement shall be interpreted so
as to render it valid and enforceable under applicable law and severable from the remainder of this Agreement. A finding that any such provision is invalid or unenforceable in any jurisdiction shall not affect the validity or enforceability of any
other provision or the validity or enforceability of such provision under the law of any other jurisdiction. 
 (d) Each of the
parties agrees to execute all such further instruments and documents and to take all such further action as the other party may reasonably require in order to effectuate the terms and purposes of this Agreement. 
 (e) For purposes of this Agreement, singular terms include the plural and vice versa and any pronoun of one gender includes the other gender or the
neuter. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement on the date first above written 

  

									
	LENDER	 		 		 	HOME SCHOOL, INC.
				
	 

	 		 	By:	 	 

	Signature	 		 		 		 	
				
	 

	 		 	Its:	 	 Chairman & CEO

	Printed Name	 		 		 	

									
			
	Loan: $ 300,000.00	 		 	Accepted as to $ 300,000.00
					
	Residence:	 		 		 		 	
			
	 631 Austin
	 		 	 01/16/08

	Street Name and Number	 		 	Date	 	
				
	 Park Ridge, IL
	 		 		 	
	City/State/Zip Code	 		 		 	
				
	 847-823-1488
	 		 		 	
	Telephone Number	 		 		 	
				
	  
	 		 		 	
	Social Security/Taxpayer Identification Number	 		 		 	
				
	 01/16/08
	 		 		 	
	Date	 		 		 		 	

 Signature page to Loan Agreement 
  

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