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LOAN AGREEMENT AND PROMISSORY NOTE

 

THIS LOAN AGREEMENT AND PROMISSORY NOTE (the “PN”) is made on the date signed below, by and between Participant: _____________________________________ (hereinafter, known as “LENDER”), and 1BLUEJAY CORP, a corporation organized under the laws of the Republic of the Philippines on ____________ and (hereinafter, known as “BORROWER”). BORROWER and LENDER shall collectively be known herein as “the Parties”. In determining the rights and duties of the Parties under this Loan Agreement, the entire document must be read as a whole and under the controlling terms and conditions of the Debt Offering for five million USD, Issued by the BORROWER, per the Private Placement Memorandum (“PPM”) dated January ___, 2022.

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, BORROWER promises to repay to the order of LENDER, in accord with the above referenced PPM, the subscribed principal sum of $_____________ dollars (USD), at the conclusion of the Contract period, in accord with the selection of Contract “Option I” of two (2) years or Contract “Option II” of four (4) years. The Contract date shall commence upon two conditions: (1) date from receipt of funds by the BORROWER (aka Issuer, 1Bluejay Corp), and (2) the acceptance/approval of Participant’s subscription application by the designated Signatory of the Issuer. The terms of the PPM require satisfaction of “suitability” based on the Application and Suitability Questionnaire. Therefore, the Signatory must approve or reject the application within five (5) days. -Rejection requires immediate return of all submitted funds.  

 

ADDITIONAL LOAN TERMS

 

The BORROWER and LENDER, hereby further set forth their rights and obligations to one another under this Loan Agreement and Promissory Note and agree to be legally bound as follows: The applicable “interest rate” shall be fixed at fourteen percent (14%) per annum on both Contract Option I and Option II. The additional periodic amount(s) simultaneously due and payable, are to be paid as “dividends”, and be fixed at the differential amount/percentage due. The periodic payment schedule and dividend rate depend upon the Contract Option selected by Participant, as further stated herein below.

 

A. Contract Option I:

The fixed rate of interest at 14% per annum plus applicable dividend rate per annum shall be made simultaneously, in aggregate, fixed at four percent (4%) monthly Rate of Return (“ROR”), for a total of twelve percent (12%) ROR due and payable quarterly, equal to forty eight percent (48%) per annum. Option I contract and Promissory Note period is for two (2) years.

 

B. Contract Option II:

The fixed rate of interest at 14% per annum plus applicable dividend rate per annum shall be made simultaneously, in aggregate, fixed at five percent (5%) monthly ROR for a total of thirty percent (30%) ROR due and payable semi-annually, equal to sixty percent (60%) per annum. Option II contract and Promissory Note period is for four (4) years.

 

C. Periodic Payment Due Dates:

Regardless of the Contract Option selected, the due date of each periodic payment shall be on the first business banking day of the month following sixty (60) days (in arrears) from the date of the commencement of the Loan Agreement and Promissory Note. Following the first payment due date, the recurring quarterly or semi-annual dates that follow will be the periodic due date(s). In other words, there will be always be a lag of 60-90 days for the first subsequent payments of accrued interest and dividends, depending on the activation date of the contract relative to subsequent payment due date(s). Upon the final due date for payment of interest and dividends accrued, and repayment of loan principal, all said amounts will be paid without delay.  

 

D. Penalties for early withdrawal of principal:

LENDER (Offering Participant) may, upon demand in writing and/or by email to the BORROWER (“1Bluejay Corp” c/o Administrator: “1Tradewell Corp”) the withdrawal of the sum of principal funds from BORROWER and thereby nullify the Loan Agreement and Promissory Note. LENDER shall be repaid their sum principal, subject only to penalties that shall apply to interest and dividends accrued but not paid. (No deduction to principal.) The date said notice is received by the BORROWER (via Administrator) shall mark the end of accrual of interest and dividends. The total amount accrued but unpaid, otherwise due to Participant(s), shall not be paid as a penalty. The sum principal will then be repaid to Participant on the first business/banking day of the following month. –Upon payment in full, no further obligations hereto shall then pertain to either Party.  

 

E. Collateral:

As collateral for repayment of Loan Amount, BORROWER agrees to commit all assets, equity and/or stock shares held in and by BORROWER, ref: common shares, and to include assets of its subsidiaries, and all equity accounts owned by the BORROWER. LENDER understands that said shares are restricted under Rule 144 of the Securities Act of 1933.   

 

F. Method of Loan Payment:

The BORROWER shall make all payments called for under this loan agreement by sending check or other negotiable instrument, or bank wire, made payable to the following individual or entity at the address indicated: If LENDER gives written notice to BORROWER that a different address shall be used for making payments under this loan agreement, BORROWER shall use the new address so given by LENDER.

 

G. Selection of Contract Option 1 or Option II:

In accord with the herein referenced Private Placement Memorandum (“PPM”) and the terms of the Loan Agreement and Promissory Note, the undersigned Participant (LENDER) shall select Option I or Option II: As initialed and in agreement with the terms on same Options in the PPM:

 

I hereby select: Option I: _______ Option II: ________

 

H. Default:

The occurrence of any of the following events shall constitute a Default by the BORROWER of the terms of this Loan Agreement and Promissory Note:

1. BORROWER’S failure to pay any amount due as principal or interest on the date required under this loan agreement.

2. BORROWER seeks an order of relief under the Federal Bankruptcy laws of the Philippines.

3. A federal tax lien is filed against the assets of BORROWER by the government of the Philippines.

 

     F. Additional Provisions Regarding Default:

Addressee and Address to which LENDER is to give BORROWER written notice of default:

If BORROWER gives written notice to LENDER that a different address shall be used, LENDER shall use that address for giving notice of default (or any other notice called for herein) to BORROWER.

 

1) Cure of Default. Upon default, LENDER shall give BORROWER written notice of default. Mailing of written notice by LENDER to BORROWER via U.S. Postal Service Certified Mail or other certified delivery shall constitute prima facie evidence of delivery. BORROWER shall have 30 days after receipt of written notice of default from LENDER to cure said default. In the case of default due solely to BORROWER’S failure to make timely payment as called for in this loan agreement, BORROWER may cure the default by either: (i) making full payment of any principal and accrued interest (including interest on these amounts) whose payment to LENDER is overdue under the loan agreement and, also, the late-payment penalty described below; or (ii) release collateral to LENDER as described in paragraph E “Collateral”, above.  

 

2) Penalty for Late Payment. There shall also be imposed upon BORROWER a penalty of one percent (1%) per month (pro-rata, simple interest) for any late payment computed upon the amount of any principal and accrued interest whose payment to LENDER is overdue under this loan agreement and for which LENDER has delivered a notice of default to BORROWER.

 

3) Indemnification of Attorney’s Fees and Out-of-Pocket Costs. Should any party materially breach this agreement, the non-breaching party shall be indemnified by the breaching party for its reasonable attorney’s fees and out-of-pocket costs which in any way relate to, or were precipitated by, the breach of this agreement. The term “out-of-pocket costs”, as used herein, shall not include lost profits. A default by BORROWER which is not cured within thirty (30) days after receiving a written notice of default from LENDER constitutes a material breach of this agreement by BORROWER.

 

   G. Parties That Are Not Individuals:

If any Party to this agreement is other than an individual (i.e., a corporation, a Limited Liability Company, a Partnership, or a Trust), said Party, and the individual signing on behalf of said Party, hereby represents and warrants that all steps and actions have been taken under the entity’s governing instruments to authorize the entry into this Loan Agreement. Breach of any representation contained in this paragraph is considered a material breach of the Loan Agreement.

 

H. Integration:

This Agreement, including the attachments mentioned in the body as incorporated by reference, sets forth the entire agreement between the Parties with regard to the subject matter hereof. All prior agreements, representations and warranties, express or implied, oral or written, with respect to the subject matter hereof, are superseded by this agreement. This is an integrated agreement.

 

I. Severability:

In the event any provision of this Agreement is deemed to be void, invalid, or unenforceable, that provision shall be severed from the remainder of this Agreement so as not to cause the invalidity or unenforceability of the remainder of this Agreement. All remaining provisions of this Agreement shall then continue in full force and effect. If any provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope and breadth permitted by law.

 

   J. Modification:

Except as otherwise provided in this document, this Agreement may be modified, superseded, or voided only upon the written and signed agreement of the Parties. Further, the physical destruction or loss of this document shall not be construed as a modification or termination of the agreement contained herein.  

 

  K. Jurisdiction for Suit in Case of Breach:

The Parties, by entering into this agreement, submit to jurisdiction in the Republic of the Philippines for adjudication of any disputes and/or claims between the Parties under this agreement. Furthermore, the Parties hereby agree that the courts of the Republic of the Philippines shall have jurisdiction over any disputes between the parties relative to this agreement, whether said disputes sounds in contract, tort, or other areas of the law.

 

  L. State Law.

This Agreement shall be interpreted under, and governed by, the laws of the Republic of the Philippines.

LOAN AGREEMENT AND PROMISSORY NOTE

 

ENTIRE AGREEMENT:

The foregoing three (3) pages of terms and conditions, pertaining to the referenced PPM, Issued by the BORROWER, together with this page of executed signatures of the Parties named below, shall constitute the Entire Agreement:

 

IN WITNESS WHEREOF and acknowledging acceptance and agreement of the foregoing terms, BORROWER and LENDER affix their signatures hereto.

  

LENDER: Participant of PPM ​​​ BORROWER: 1Bluejay Corp. ​​

 

_______________________________________​ ____________________________________, Signatory​

Signature over printed name/date​​ Signature over printed name/date

____________________________ ___/___, 2022 ______________________________ ___/___, 2022

“Loan Agreement and Promissory Note” ref: 1BLUEJAY CORP, Issuer of PPM.

 
This article was published on 09.01.2022 by Lucas A Ivan
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