Exhibit 10.13
PROMISSORY NOTE
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Principal Loan Date Maturity Loan No Call / Coll Account
$650,000.00 03-01-2002 29962
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Officer Initials
302
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References in the shaded area for Lender's use only and do not limit the
applicability of this document to any particular loan or item. Any item above
containing "***" has been omitted due to text length limitations.
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Borrower: GO2 PHARMACY INC DBA INNOVATIVE HEALTH
PRODUCTS, INC (TIN: ▇▇-▇▇▇▇▇▇▇)
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Lender: First Community Bank of America
St. Petersburg Office
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
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Principal Amount: $650,000.00 Interest Rate: 4.250%
Date of Note: March 1, 2002
PROMISE TO PAY. GO2 PHARMACY INC DBA INNOVATIVE HEALTH PRODUCTS, INC
("Borrower") promises to pay to First Community Bank of America ("Lender"), or
order, in lawful money of the United States of America, on demand, the principal
amount of Six Hundred Fifty Thousand & 00/100 Dollars ($650,000.00) or so much
as may be outstanding, together with interest at the rate of 4.250% per annum on
the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.
PAYMENT. ▇▇▇▇▇▇▇▇ will pay this loan immediately upon ▇▇▇▇▇▇'s demand. Payment
in full is due immediately upon ▇▇▇▇▇▇'s demand. Borrower will pay regular
monthly payments of all accrued unpaid interest due as of each payment date,
beginning April 1, 2002, with all subsequent interest payments to be due on the
same day of each month after that. Unless otherwise agreed or required by
applicable law, payments will be applied first to accrued unpaid interest, then
to principal, and any remaining amount to any unpaid collection costs and late
charges. The annual interest rate for this Note is computed on a 365/360 basis;
that is, by applying the ratio of the annual interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender at
▇▇▇▇▇▇'s address shown above or at such other place as Lender may designate in
writing.
PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by ▇▇▇▇▇▇ in
writing, relieve ▇▇▇▇▇▇▇▇ of ▇▇▇▇▇▇▇▇'s obligation to continue to make payments
of accrued unpaid interest. Rather, early payments will reduce the principal
balance due. ▇▇▇▇▇▇▇▇ agrees not to send Lender payments marked "paid in full",
"without recourse", or similar language. If Borrower sends such a payment,
▇▇▇▇▇▇ may accept it without losing any of ▇▇▇▇▇▇'s rights under this Note, and
Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes "payment in full"
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to: First
Community Bank of America, ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇.
LATE CHARGE. If a regularly scheduled interest payment is 10 days or more late,
Borrower will be charged 5.000% of the regularly scheduled payment or $15.00,
whichever is greater. If ▇▇▇▇▇▇ demands payment of this loan, and ▇▇▇▇▇▇▇▇ does
not pay the loan in full within 10 days after ▇▇▇▇▇▇'s demand, ▇▇▇▇▇▇▇▇ also
will be charged either 5.000% of the sum of the unpaid principal plus accrued
unpaid interest or $15.00, whichever is greater.
INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, Lender, at its option, may, if permitted under applicable law,
increase the interest rate on this Note to 18.000% per annum, if and to the
extent that the increase does not cause the interest rate to exceed the maximum
rate permitted by applicable law.
DEFAULT. Each of the following shall constitute an event of default ("Event of
Default") under this Note.
Payment Default. Borrower fails to make any payment when due under this
Note:
Other Defaults. Borrower fails to comply with or to perform any other term,
obligation, covenant or condition contained in this Note or in any of the
related documents or to comply with or to perform any term, obligation,
covenant or condition contained in any other agreement between Lender and
Borrower.
Default in Favor of Third Parties. Borrower or any Grantor defaults under
any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in favor of any other creditor or person
that may materially affect any of Borrower's property or Borrower's ability
to repay this Note or perform Borrower's obligations under this Note or any
of the related documents.
False Statements. Any warranty, representation or statement made or
furnished to Lender by Borrower or on Borrower's behalf under this Note or
the related documents is false or misleading in any material respect,
either now or at the time made or furnished or becomes false or misleading
at any time thereafter.
Insolvency. The dissolution or termination of ▇▇▇▇▇▇▇▇'s existence as a
going business, the insolvency of ▇▇▇▇▇▇▇▇, the appointment of a receiver
for any part of ▇▇▇▇▇▇▇▇'s property, any assignment for the benefit of
creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or
forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any
governmental agency against any collateral securing the loan. This includes
a garnishment of any of ▇▇▇▇▇▇▇▇'s accounts, including deposit accounts,
with Lender. However, this Event of Default shall not apply if there is a
good faith dispute by ▇▇▇▇▇▇▇▇ as to the validity or reasonableness of the
claim which is the basis of the creditor or forfeiture proceeding and if
Borrower gives ▇▇▇▇▇▇ written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the
creditor or forfeiture proceeding, in an amount determined by Lender, in
its sole discretion, as being an adequate reserve or bond for the dispute.
Events Affecting Guarantor. Any of the preceding events occurs with respect
to any guarantor, endorser, surety, or accommodation party of any of the
indebtedness or any guarantor, endorser, surety, or accommodation party
dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.
In the event of a death, Lender, at its option, may, but shall not be
required to, permit the guarantor's estate to assume unconditionally the
obligations arising under the guaranty in a manner satisfactory to Lender,
and, in doing so, cure any Event of Default.
Change in Ownership. Any change in ownership of twenty-five percent (25%)
or more of the common stock of Borrower.
Adverse Change. A material adverse change occurs in Borrower's financial
condition, or ▇▇▇▇▇▇ believes the prospect of payment or performance of
this Note is impaired.
Insecurity. Lender in good faith believes itself insecure.
Cure Provisions. If any default, other than a default in payment is curable
and if Borrower has not been given a notice of a breach of the same
provision of this Note within the preceding twelve (12) months, it may be
cured (and no event of default will have occurred) if Borrower, after
receiving written notice from Lender demanding cure of such default: (1)
cures the default within fifteen (15) days; or (2) if the cure requires
more than fifteen (15) days, immediately initiates steps which Lender deems
in ▇▇▇▇▇▇'s sole discretion to be sufficient to cure the default and
thereafter continues and completes all reasonable and necessary steps
sufficient to produce compliance as soon as reasonably practical.
LENDER'S RIGHTS. Upon default, ▇▇▇▇▇▇ may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, and then
Borrower will pay that amount.
ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect
this Note if Borrower does not pay. Borrower will pay Lender the amount of these
costs and expenses, which includes, subject to any limits under applicable law,
▇▇▇▇▇▇'s reasonable attorney's fees and ▇▇▇▇▇▇'s legal expenses whether or not
there is a lawsuit, including reasonable attorneys' fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay
or injunction), and appeals. If not prohibited by applicable law, ▇▇▇▇▇▇▇▇ also
will pay any court costs, in addition to all other sums provided by law.
JURY WAIVER. ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either ▇▇▇▇▇▇ or Borrower against
the other.
GOVERNING LAW. This Note will be governed by, construed and enforced in
accordance with federal law and the laws of the State of Florida. This Note has
been accepted by ▇▇▇▇▇▇ in the State of Florida.
CHOICE OF VENUE. If there is a lawsuit, ▇▇▇▇▇▇▇▇ agrees upon ▇▇▇▇▇▇'s request to
submit to the jurisdiction of the courts of Pinellas County, State of Florida.
DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower
makes payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.
RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or ▇▇▇▇▇ accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower
PROMISSORY NOTE
Loan No: 29962 (Continued) Page 2
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authorizes ▇▇▇▇▇▇, to the extent permitted by applicable law, to charge or
setoff all sums owing on the indebtedness against any and all such accounts,
and, at ▇▇▇▇▇▇'s option, to administratively freeze all such accounts to allow
Lender to protect ▇▇▇▇▇▇'s charge and setoff rights provided in this paragraph.
LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested either orally or in writing by Borrower or by an
authorized person. All oral requests shall be confirmed in writing on the day of
the request, on forms acceptable to Lender. All communications, instructions, or
directions by telephone or otherwise to Lender are to be directed to ▇▇▇▇▇▇'s
office shown above. ▇▇▇▇▇▇▇▇ agrees to be liable for all sums either: (A)
advanced in accordance with the instructions of an authorized person or (B)
credited to any of ▇▇▇▇▇▇▇▇'s accounts with ▇▇▇▇▇▇. The unpaid principal balance
owing on this Note at any time may be evidenced by endorsements on this Note or
by ▇▇▇▇▇▇'s internal records, including daily computer print-outs. Lender will
have no obligation to advance funds under this Note if: (A) Borrower or any
guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Note; (B) Borrower or any guarantor ceases
doing business or is insolvent; (C) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor's guarantee of this Note or
any other loan with Lender; (D) Borrower has applied funds provided pursuant to
this Note for purposes other than those authorized by Lender; or (E) Lender in
good faith believes itself insecure.
OPEN-END BUSINESS. I may borrow up to the maximum amount of principal more than
one time.
ANNUAL LOAN INTEREST RATE ADJUSTMENT. LOAN INTEREST RATE IS BASED ON THE FIRST
COMMUNITY BANK OF AMERICA'S 12 MONTH CERTIFICATE OF DEPOSIT RATE AS PUBLISHED
WITH FIRST COMMUNITY BANK OF AMERICA. RATE WILL BE ADJUSTED ANNUALLY ON THE
ANNIVERSARY DATE OF THE NOTE WITH A RATE ADJUSTMENT OF 1.50% OVER THE
CERTIFICATED RATE.
PRIOR NOTE. RENEWAL OF ORIGINAL REVOLVING LINE OF CREDIT PROMISSORY NOTE DATED
MARCH 8, 2001 LOAN #29962.
SUCCESSOR INTERESTS. The terms of this Note shall be binding upon ▇▇▇▇▇▇▇▇, and
upon ▇▇▇▇▇▇▇▇'s heirs, personal representatives, successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns.
NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.
Please notify us if we report any inaccurate information about your account(s)
to a consumer reporting agency. Your written notice describing the specific
inaccuracy(ies) should be sent to us at the following address: First Community
Bank of America ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific
default provisions or rights of Lender shall not preclude ▇▇▇▇▇▇'s right to
declare payment of this Note on its demand. If any part of this Note cannot be
enforced, this fact will not affect the rest of the Note. Borrower does not
agree or intend to pay, and ▇▇▇▇▇▇ does not agree or intend to contract for,
charge, collect, take, reserve or receive (collectively referred to herein as
"charge or collect"), any amount in the nature of interest or in the nature of a
fee for this loan, which would in any way or event (including demand,
prepayment, or acceleration) cause Lender to charge or collect more for this
loan than the maximum Lender would be permitted to charge or collect by federal
law or the law of the State of Florida (as applicable). Any such excess interest
or unauthorized fee shall, instead of anything stated to the contrary, be
applied first to reduce the principal balance of this loan, and when the
principal has been paid in full, be refunded to Borrower. Lender may delay or
forgo enforcing any of its rights or remedies under this Note without losing
them. Borrower and any other person who signs, guarantees or endorses this Note,
to the extent allowed by law, waive presentment, demand for payment, and notice
of dishonor. Upon any change in the terms of this Note, and unless otherwise
expressly stated in writing, no party who signs this Note, whether as maker,
guarantor, accommodation maker or endorser, shall be released from liability.
All such parties agree that Lender may renew or extend (repeatedly and for any
length of time) this loan or release any party or guarantor or collateral; or
impair, fail to realize upon or perfect ▇▇▇▇▇▇'s security interest in the
collateral; and take any other action deemed necessary by ▇▇▇▇▇▇ without the
consent of or notice to anyone. All such parties also agree that ▇▇▇▇▇▇ may
modify this loan without the consent of or notice to anyone other than the party
with whom the modification is made. The obligations under this Note are joint
and several.
PRIOR TO SIGNING THIS NOTE, ▇▇▇▇▇▇▇▇ READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE. ▇▇▇▇▇▇▇▇ AGREES TO THE TERMS OF THE NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.
THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL
CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
BORROWER:
GO2 PHARMACY INC DBA INNOVATIVE HEALTH PRODUCTS, INC
By: /s/ ▇▇▇▇ ▇ ▇▇▇▇▇▇ (Seal)
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▇▇▇▇ ▇ ▇▇▇▇▇▇, CEO of GO2 PHARMACY INC
DBA INNOVATIVE HEALTH PRODUCTS, INC
By: /s/ ▇▇▇▇▇ ▇▇▇▇-▇▇▇▇▇▇▇ (Seal)
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▇▇▇▇▇ ▇▇▇▇-▇▇▇▇▇▇▇, VICE PRESIDENT of
GO2 PHARMACY INC DBA INNOVATIVE HEALTH
PRODUCTS, INC
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