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REVOLVING LINE OF CREDIT AGREEMENT
This loan agreement (the “Agreement”), dated as of
October 15, 2008 (the “Agreement Date”) is made by and
between:
MANTRA VENTURE GROUP LTD., a company duly incorporated under the
laws of the State of Nevada and having its office located at Suite
1205, 207 West Hastings Street, Vancouver, British Columbia, V6B
1H7 (the “Borrower”)
AND
LARRY KRISTOF, the President, Chief Executive Officer and a
Director of the Borrower (the “Lender”)
BACKGROUND
A. The Lender has agreed to make available to the Borrower a
revolving line of credit of up to US $250,000.
B. As of the Agreement Date, the Lender has previously advanced
loans to the Borrower (the “Prior Advances”).
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which each of the parties hereby acknowledges, the
parties agree as follows: PART 1
TERMS OF LINE OF CREDIT
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1.
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Line of Credit. The Lender will make available to the
Borrower for a period extending to October 14, 2010 (the
“Maturity Date”), a revolving line of credit for the
principal amount of up to US $250,000 (the “Credit
Limit”). In connection herewith, the Borrower will execute
and deliver to the Lender a promissory note in the amount of the
Credit Limit attached hereto as “Exhibit A” (the
“Promissory Note”). All sums advanced on the Credit
Line pursuant to the Agreement or as Prior Advances shall become
part of the principal of the Promissory Note.
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2.
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Prior Advances. The balance of the Line of Credit
available to be advanced to the Borrower will be reduced by the
Prior Advances.
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3.
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Draw Down Period. The Borrower may draw down funds
under the Line of Credit from the Agreement Date until the Maturity
Date.
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4.
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Notice of Advance by Borrower. In order to draw down
funds under the Line of Credit, the Borrower must provide written
notice to the Lender of the amount the Borrower wishes to be
advanced (the “Notice”), such amount not to exceed US
$25,000 each month (the “Advance Amount”).
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5.
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Advances by Lender. Within 30 days of receiving the
Notice from the Borrower, the Lender will provide the Advance
Amount to the Borrower.
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6.
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Method of Payment of Advances. All advances made by
the Lender on account of the Line of Credit will be made b
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