THIS REVOLVING
PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND HAS BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR
DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT.
______________________________________________________________________________
$500,000.00 As of October 19,
2009
Los
Angeles, California
REVOLVING PROMISSORY
NOTE
In consideration of such advances (hereinafter
“ Advance ” or “ Advances ”)
as LANDBANK, LLC , a California limited liability company,
or its assigns (collectively, “ Holder ”), from
time to time may make hereon to or for the benefit of TRIST
HOLDINGS, INC. , a Delaware corporation (the “
Company ”), at the Company’s offices at 7030
Hayvenhurst Avenue, Van Nuys, CA, 91406, or at such other place as
the parties may mutually agree, pursuant to the Revolving Credit
Commitment, as defined below, up to the maximum aggregate principal
amount of Five Hundred Thousand Dollars ($500,000.00) (the “
Maximum Aggregate Amount ”), the Company hereby
promises to pay to Holder the principal amount of all Advances,
together with accrued interest thereon from the date of such
Advances, all subject to the terms and conditions set forth
below.
1. Revolving
Credit Commitment .
1.1 Advances
. The Holder agrees to make Advances to the Company from
time to time during the Revolving Credit Commitment Period, as
defined below, in an aggregate principal amount at any one time
outstanding which does not exceed the Maximum Aggregate Amount (the
“ Revolving Credit Commitment
”). During the Revolving Credit Commitment Period,
the Company may use the Revolving Credit Commitment by borrowing,
prepaying any Advances in whole or in part, and re-borrowing, all
in accordance with the terms and conditions hereof. !
1.2
Interest . Interest shall accrue from the date of
any Advances on any principal amount withdrawn, and on accrued and
unpaid interest thereon, at the rate of eight percent (8%) per
annum, compounded annually.
2. Revolving
Credit Commitment Period . The revolving credit
commitment period (the “ Revolving Credit Commitment
Period ”) shall commence as of the date hereof and shall
expire on October 19, 2010 (the “ Expiration Date
”).
3. Procedure for
Revolving Credit Advances .
3.1 The Company may
request Advances under the Revolving Credit Commitment during the
Revolving Credit Commitment Period on any day of the week, Monday
through Friday, 9 a.m. through 5 p.m., Pacific Time, (hereinafter
referred to as any “ Business Day ” or “
Business Days ”), provided that the Company
shall give the Holder irrevocable notice (which notice must be
received by the Holder prior to 12:00 Noon, Pacific Time) one (1)
Business Day prior to the requested Advance date, specifying (i)
the amount of the Advance, and (ii) the requested Advance
date. Each Advance under the Revolving Credit Commitment
shall be in an amount equal to $50,000 or a whole multiple of
$50,000 in excess thereof. Upon receipt of any such
notice from the Company, the Holder will make the amount of the
Advance available prior to 12:00 Noon, Pacific Time, on the Advance
date requested by the Company in funds immediately available to the
Company.
3.2 The Holder shall
maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of the Company to the Holder
resulting from each Advance from time to time, including the
amounts of principal and interest payable and paid to the Holder
from time to time under this Note. The parties
acknowledge and agree that as of the date hereof, an aggregate
principal amount of $336,518 in Advances is outstanding.
4.1 General
. Repayment on any Advances shall be made in lawful
tender of the United States. Any payments on this Note
made during the Revolving Credit Commitment Period, as defined
below, shall be credited first to any interest due and the
remainder to principal.
4.2 Repayment of
Principal and Interest . All outstanding and unpaid
principal, and all outstanding and accrued unpaid interest, shall
become due and payable on and as of the Expiration Date.
4.3
Optional Prepayment . The Company may, at any
time and from time to time and without penalty, prepay all or any
portion of the accrued and unpaid interest on this Note and any
outstanding principle amount of this Note.
5.1 Holder
acknowledges that