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Exhibit 10c-1
REVOLVING LOAN AGREEMENT
This Revolving Loan Agreement (the "Agreement") is effective as
January
20, 2005 by and between
Robert Shively and Geoff Shively (the "Lenders"), and
PivX Solutions, Inc. (the
"Borrower").
1.
Lenders hereby agree to lend the sum of five hundred thousand
dollars
($500,000) to Borrower, and Borrower agrees to borrow the said sum
from
Lenders upon the terms and conditions set forth herein.
2.
Lender agrees that
from time to time during the term of this Agreement
it shall lend at its discretion to Borrower sums which, in
the
aggregate principal amount outstanding at any one time, shall
not
exceed $500,000 (the "Credit").
(a) The Credit
shall be a revolving credit and Borrower may
request advances, repay and re-borrow amounts during the
continuation of the Credit, as Lenders may in their
discretion
deem advisable, subject to the applicable provisions of
this
Agreement. Each such revolving credit loan made hereunder
(an
"Advance") shall have a scheduled maturity date
("Scheduled
Maturity Date") of July 20, 2005, unless previously paid.
All
such Advances made hereunder shall be included on the
schedule
contained in the "Revolving Promissory Note" referred to
in
paragraph 2(c) below which schedule by this reference is
made
a part hereof.
(b) This
agreement shall terminate on July 20, 2005 and no new
advances hereunder shall be made on or after that date.
Notwithstanding the above, if any Advances made hereunder
are
still outstanding as of this Agreement shall continue in
full
force and effect with respect to such Advances until
such
Advances are repaid.
(c) The
obligation of Borrower to repay the aggregate unpaid
principal amount of the Advances shall be evidenced by a
single promissory note of Borrower bearing on its face
an
appropriate legend stating that such note is subject to
the
provisions of this Agreement, which shall be adequately
referred to and incorporated herein (the "Revolving
Promissory
Note"). The Revolving Promissory Note shall be payable to
the
order of the Lender in a face amount equal to the
Credit,
bearing no interest. The Revolving Promissory Note shall
be
dated, and shall be delivered to Lenders, on the date of
the
execution and delivery of this Agreement by Borrower.
Lenders
shall, and are hereby authorized by Borrower to, endorse
on
the schedule contained on the Revolving Promissory Note, or
on
a continuation of such schedule attached thereto and made
a
part thereof and hereof, appropriate notations regarding
the
Advances evidenced by the Revolving Promissory Note as
specifically provided therein; provided, however, that
the
failure to make, or error in making, any such notation
shall
not limit or otherwise affect the obligations of
Borrower
hereunder or under the Revolving Promissory Note.
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(d) The unpaid
principal amount of an Advance shall bear no
interest prior to its Scheduled Maturity Date. After the
Scheduled Maturity Date, the unpaid principal amount of
the
Advance shall bear interest until paid at ten percent
(10%).
All interest shall be computed on the basis of a year
consisting of 365 days and paid for the actual number of
days
elapsed.
(e)
Notwithstanding any term hereof to the contrary, Lender
reserves the right to make any Advance hereunder in its
sole
and absolute discretion. It is expressly understood and
agreed
by Borrower and each of its successors and permitted
assigns
that nothing herein creates any liability on Lender, its
successors and permitted assigns that nothing herein
creates
any liability on Lender, its successors or permitted
assigns
to make any Advance.
(f) Whenever
Borrower desires Lenders to make an Advance, it shall
give written notice via email to Lenders of such
Advance,
setting forth the amount of the Advance and the date on
which
such Advance is to be made.
3. The
Lenders hereby agree that any right to receive any payment
with
respect to this Agreement prior to the Scheduled Maturity Date
shall be
determined and made at the discretion of the CEO, CFO and
General
Counsel of Borrower.
4. The
proceeds of this Agreement shall be used and dealt with by
the
Borrower as part of its capital and shall be