Debt Agreement
DEBT AGREEMENT
This Debt Agreement ("Agreement") made and entered into effective from the 1st day of January 2050 (the “Effective Date”) by and between:
PARTY A:
Mr. Otis Elliott, a business entrepreneur, having his principal place of business at 654 Dreamer's Road, Suite 99, Imagination Isle, NY 67890 (the "Debtor");
PARTY B:
Mr. Kevin Lim, an investor, located at 123 Bliss Road, Apt 11, Joyful Junction, FL 56789 (the "Creditor");
Collectively referred to hereto as the “Parties”.
WHEREAS,
The Debtor acknowledges that he is indebted to the Creditor in the amount of $300,000 as an initial investment for his business.
NOW, THEREFORE,
In consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. REPAYMENT OF LOAN
The Debtor agrees to repay the Creditor the total outstanding balance of $300,000 with an interest rate of 20%, payable in quarterly installments until the low balance has been paid in full.
2. DEFAULT
In the event the Debtor fails to fulfill any of its obligations under this Agreement, including the timely payment, the Creditor has the right to claim from the Debtor the full amount of the unpaid debt.
3. GOVERNING LAW
This Agreement shall be governed by and interpreted according to the laws of the jurisdiction in which the Debt originates.
4. ACKNOWLEDGMENT
The Debtor acknowledges that he has been given ample time to review this Agreement and understands its content.
5. BINDING EFFECT
This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, and permitted successors and assigns.
IN WITNESS WHEREOF, the Parties hereto have executed this Debt Agreement as of the Effective Date.
