LOAN AGREEMENT

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March 12, 2023

LOAN AGREEMENT

THIS AGREEMENT, effective as of January 1, 2020 (“Effective Date”), is made and entered into by and between FM HEALING CENTER, LLC., of [ADDRESS] (“the Lender”), and SARDAR NADEEM KHAN of address [ADDRESS] (“the Borrower”).

WHEREAS the Borrower seeks to borrow money from the Lender according to the terms of this Agreement, and

WHEREAS the Lender offers to lend the Borrower money under the provisions of this Agreement.

Now, therefore, in consideration of the foregoing premises, and of the mutual promises and covenants herein contained, the parties, intending to be legally bound, do hereby agree as follows:

  1. LOAN ACKNOWLEDGEMENT

Borrower agrees and acknowledges that he owes and shall subsequently owe the Lender an amount of money equal to the Loan as outlined in this Agreement. Nothing in this Agreement is a waiver of any other amounts owed and in the event of any breach of this Agreement by the Borrower, the Lender’s rights to the Loan shall not be limited.

  • LENDER’S REPRESENTATION AND WARRANTY

The Borrower hereby represents and warrants that this Agreement and the payment plan herein have been developed in a manner that the Borrower reasonably believes they can pay the Lender without further interruption notwithstanding an additional change in circumstances.

  • BORROWING SCHEDULE

From the Effective Date of this Agreement, Borrower can request loan amounts for personal use each month up to $10,000 per month.

  • METHOD OF PAYMENT/PAYMENT PLAN
  • Borrower shall start making payments to the loan in January 2022. Borrower shall repay loan with an interest rate of 3% interest per annum until the loan is paid in full.
  • All payments made by the Borrower are to be applied first (1st) to any accrued interest and then to the principal balance.
  • EARLY PAYOFF

The Borrower reserves the right to pay off any remaining amount due, in full, before the Due Date with no prepayment penalty.

  • DEFAULT
  • The following events constitute default of this Loan Agreement:
  • Borrower’s failure to pay the Principal Sum or any accrued interest when such payments are due;
  • Borrower’s insolvency;
  • Borrower’s divorce;
  • Borrower’s death, incompetency; or liquidation;
  • Borrower’s making of a general assignment for the benefit of Borrower’s creditors;
  • Borrower’s filing of any bankruptcy proceedings.
  • Upon the occurrence of a default under this Agreement, and in addition to any other rights and remedies that Lender’s may have, Lender shall have the right, at its sole and exclusive option, to declare this Agreement immediately due and payable. 
  • COLLECTION COST

Should the Borrower default on completing any obligation contained within this Loan Agreement, including, but not limited to, if any of the circumstances in the Default provision occur, the Lender may declare the entire amount remaining due immediately. Any and all costs or expenses incurred by the Lender in enforcing the obligations of this Loan Agreement as a result of Buyer’s default, including any legal fees or costs, will be added to the remaining amount due and must be paid immediately by the Borrower.

  • SUBORDINATION

The Borrower’s obligations under this Agreement are subordinated to all indebtedness, if any, of the Borrower, to any unrelated third-party lender to the extent such indebtedness is outstanding on the date of this Agreement and such subordination is required under the loan documents providing for such indebtedness.  

  • RELEASE AND INDEMNIFICATION

In consideration for agreeing to this Loan Agreement, the Borrower hereby releases any claims against the Lender related to the Loan as of the date of this Agreement. However, nothing in this Agreement is meant to release the Borrower from its obligation to pay the Loan according to the Plan herein or limit the rights of the Lender in collecting said Loan.

  1. ASSIGNMENT

The Lender may assign this Agreement with written notice to the Borrower. In the event of such assignment, the assignee may designate a new method of payment if desired.

  1. MODIFICATION

No modification of this Agreement shall be valid unless in writing and agreed upon by both Parties.

  1. APPLICABLE LAW

This Loan Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of Kentucky and subject to the exclusive jurisdiction of the federal and state courts located in Kentucky.

  1. SEVERABILITY

In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason, then the Parties agree that such provision shall be deemed to be struck and the remainder of the Agreement shall be enforced as if the struck provision were never included in the Agreement.

  1. REMEDIES

No delay or omission on part of the Lender in exercising any right hereunder shall operate as a waiver of any such right or of any other right of Lender, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. The rights and remedies of the Lender shall be cumulative and may be pursued singly, successively, or together, in the sole discretion of the Lender.

  1. TERM

The term of this Agreement commences on the Effective Date and continues until January 1, 2025, until otherwise terminated by the parties.

  1. DISPUTE RESOLUTION

Part of the Lender’s policy is to resolve grievances internally through an informal consultation process. Should the Borrower at any time need to discuss any matter, the Lender is encouraged to report any complaints immediately to the Borrower.

  1. TERMINATION
  1. This Agreement SHOULD NOT be terminated before the completion of the term other than in exceptional circumstances (e.g., serious misconduct) and only where there has been extensive discussion between the parties to this Agreement.
  1. In all other circumstances, each Party to this Agreement may terminate this Agreement upon written notice of termination to the other Party.
  1. ENTIRETY

This Agreement represents the entire Agreement between the two parties pertaining the subject matter and supersedes any previous written or oral agreement.

In Witness Whereof, this Agreement is duly executed by the parties, or their duly authorized representatives as set forth below:

Borrower’s Signature: ___________________________ Print: ____________________

Lender’s Signature: ___________________________ Print: ____________________

Witness’s Signature: ___________________________ Print: ____________________

Witness’s Signature: ___________________________ Print: ____________________

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