ASSET ENHANCEMENT LOAN PROGRAM CONTRACT
PARTIES: This Contract is entered into by and between the Corporate Applicant:
[CORPORATE APPLICANT] by and through [SIGNATORY] as the sole signatory and, hereinafter
referred to as the “Lender” and [INVESTMENT CORPORATION] and hereinafter referred to as
“[Investment Co.]”, with [LENDER SIGNATORY] as the signatory(s) and paymaster(s) located at
Now, therefore, the parties hereby agree to the following terms and conditions.
REPRESENTATIONS OF THE LENDER: The Lender is sophisticated and knowledgeable, with
substantial income and assets, and with sufficient ability and experience to evaluate and judge its own
financial transactions. Lender hereby affirms that it has solicited this opportunity on its own volition,
without officer, solicitation, encouragement, influence or urging from anyone.
The Lender has good, clean, clear cash funds of non-criminal origin, and desires to loan said funds to
[Investment Co.], in exchange for a rate of interest to be described in Addendum “A” attached hereto and
incorporated herein by reference as though set forth at this point verbatim. Lender represents and affirms
that it has the unconditional authority over said funds, and has the power and authority to enter into this
Lender is ready, willing and able to lend cash in the amount of [Holdingco]
States Dollars ($USD), hereinafter referred to as the “loaned funds”. The Lender’s ability to loan the
above-stated amount has been evidenced by a valid current proof of funds, accepted and validated by
Lender fully understands this contract and offers its signature, thereby agreeing to be bound by the terms
and conditions stated herein.
REPRESENTATIONS OF [INVESTMENT CO.]: [Investment Co.] has the power and ability to:
A. Engage and request [HOLDING COMPANY] hereinafter referred to as “[Holdingco]” to accept
the loaned funds, to pay the rate of return as described in Addendum “A” entitled Specification
of Interest and Rate of Return;
B. Receive from [Holdingco] a Promissory Note for the amount of the loaned funds and in the form
as shown in Addendum “B” attached hereto and incorporated herein by reference as though set
forth at this point verbatim;
C. Protect the loaned funds with a Fidelity Bond (more fully described below);
D. Protect the loaned funds with a Declaration of Trust, and in the form as shown in Addendum
“C” attached hereto and incorporated herein by reference as though set forth at this point
TERM: The length of this contract is thirteen months from the date of the deposit of [Investment Co.]’s
funds to [Holdingco]. At the conclusion of the contract, the Lender’s funds shall be returned to the
Lender, unencumbered, according to the terms of the Promissory Notes (See Addendum “B”). During the
life of the contract, there will be twelve interest payments. The first such interest payment shall be
approximately six weeks from the date of the transfer of the principal. The next eleven payments shall be
made approximately each month until completed.
DELIVERY OF DOCUMENTS: All documents exchanged between the parties may be exchanged via
facsimile. Facsimile copies shall be deemed to have the same force, effect and solemnity as the original
hard copy. In any case, any party, should they so desire, may request and shall receive an original hard
copy of any particular document.
DELIVERY OF INTEREST PAYMENTS: The twelve interest payments described above shall be
delivered by the [officer] of [Holdingco] to [Investment Co.], via wire transfer, according to the
instructions of the Lender as set forth in the Distribution Instructions (See Addendum “D”).
BROKER AND INTERMEDIARY COMMISSIONS, FEES AND EXPENSES: All broker and
intermediary commissions, fees and expenses are paid by the program, over and above the return to the
Lender as described in Addendum “A”. The terms and conditions for the payment of the broker and
intermediary commissions, fees and expenses are the subject of a separate contract between the interested
brokers and intermediaries on one hand and [Holdingco] and [Investment Co.] on the other hand. The
Corporate Applicant is not obligated to pay any broker or intermediary commissions, fees or expenses.
LOAN CONTRACT PROCEDURES: The following is the list of procedures required for participation in
the loan program:
1. Lender initiates contact with [Investment Co.] by supplying:
A. Current Proof of Funds (can be in the form of a recent bank statement issued within the
prior five days, or a letter issued by Lender’s bank);
B. Letter of Intent; and
C. A Corporate Resolution.
2. Upon receipt [Investment Co.] will establish the eligibility of the Lender. Lender hereby
authorizes [Investment Co.] to obtain any information, including any credit reports that, at the
discretion of [Investment Co.], is required to complete the due diligence file.
3. Upon approval of the Lender, [Investment Co.] will issue this Program Contract with all of the
Addenda, to the Lender.
4. The Lender shall read, consider and approve the terms of this contract. Upon acceptance of all
terms and conditions, the Lender shall execute the contract and return the executed copy, via
facsimile, to [Investment Co.].
5. The [officer] shall execute a Contract on behalf of [Holdingco] and return the contract to
[Investment Co.]. At the same time the [officer] shall arrange to have [Investment Co.] listed with
the Bonding Company as a “Loss/Payee” on the Fidelity Bond, more fully described in
Addendum “E”, entitled Fidelity Bond Description and Disclosure, attached hereto and
incorporated herein by reference as though set forth at this point verbatim.
6. [Investment Co.] shall receive a copy of the binder, issued by the authorized agent of the bonding
company, confirming the status of [Investment Co.] as a “loss/payee”, according to the terms set
forth in Addendum “E”.
7. The Lender shall wire transfer the funds according to the coordinates provided in Addendum
“F” entitled “Wire Transfer Instructions”.
8. Upon confirmation of the successful transfer of the funds, [Investment Co.] shall in a timely
manner forward these funds to the [officer]. The [officer] shall execute the Promissory Note (See
9. The loaned funds shall be used to purchase a beneficial interest US Treasury Bill. Within two to
three weeks after [Investment Co.]’s delivery of the loaned funds to the [officer], the [officer] shall
issue and deliver the Declaration of Trust (See Addendum “C”), setting forth the CUSIP number
of the T-Bill, verified by the Program Attorney, and the identification of the account in which the
T-Bill will be lodged during the life of the contract. The Declaration of Trust shall also contain the
assignment of the beneficial interest in the T-Bill to [Investment Co.] for the amount of the
10. Approximately six weeks from the deposit of the Lender’s funds, the monthly interest payments
to [Investment Co.] shall commence.
11. Approximately six weeks after the last interest payment is delivered (absent an extension as
described below), the Lender’s principal shall be returned to the coordinates as set forth in the
Distribution Instruction (See Addendum “D”).
EXTENSIONS AND ADDITIONS: Although this contract is for thirteen months, the Lender may place
additional funds with its initial funds during the term of the contract. Additions may be in sums not less
than $100,000.00 USD. The placement of additional funds will generate an amendment to the contract,
extending the life of the contract for twelve additional months form the date of the addition. The rate of
interest shall be adjusted according to the schedule set forth in Addendum “A” entitled Specification of
Interest and Rate of Return.
REGULATIONS: The parties understand and agree that this loan contract is subject to regulation from a
variety of sources, and in the event that those regulations should be modified, then this contract may also
be modified to comply with any such changes.
SUMMARY OF ADDENDA: The following is a list of the addenda attached hereto and incorporated
herein by reference:
(a) Addendum “A” entitled Specification of Interest and Rate of Return
(b) Addendum “B” entitled Promissory Note
(c) Addendum “C” entitled Declaration of Trust
(d) Addendum “D” entitled Distribution Instruction
(e) Addendum “E” entitled Fidelity Bond Description and Disclosure
(f) Addendum “F” entitled Wire Transfer Instructions
TERMINATION: In the event that the obligations of [Holdingco] are not fulfilled under the terms of this
contract, [Investment Co.] may make written demand to terminate the contract and have its principal
returned. Upon receipt of such a demand, [Investment Co.]’s funds shall be returned within thirty days.
In such an event, [Investment Co.] relinquishes any further claim to any interest that may be due and
owing as of the date of the demand, and upon the timely return of the principal, [Investment Co.] releases
and discharges [Holdingco] and its agents, servants and employees from any liability for any amounts
NON-CIRCUMVENTION AND NON-DISCLOSURE: Lender is not authorized, directly or indirectly,
to make contact with any organization, company bank, securities firm, insurance company or any other
persons, or firms who may be known to the Lender through [Investment Co.]. The Lender is specifically
forbidden to undertake any transactions, directly or indirectly with persons of firms who may become
known to participant through [Investment Co.] or [Holdingco] without the express written consent of
[Investment Co.] and/or [Holdingco]. The Lender binds itself to strict confidentiality with respect to third
persons who have no direct connection with this agreement. Any violation of this covenant, no matter
how small, authorizes [Investment Co.] and/or [Holdingco] to immediately cancel this contract and to
return the principal to the Lender, thereby causing the Lender to forfeit any right to any future interest
MODIFICATIONS AND GOVERNING LAWS: This contract replaces and supercedes all previous
agreement between the parties. Any modifications or additions to this agreement shall be in writing and
signed by the parties. Verbal agreements are not valid. In the event of a legal dispute, the agreed
jurisdiction shall be in [jurisdiction].
COMPLETE AGREEMENT: This contract, together with the Addenda contains all of the essential
elements of the agreement between the parties hereto and is binding and enforceable.
LEGAL FEES: In the event of a dispute, the prevailing party is entitled to recover reasonable legal
expenses, fees and costs.
IN WITNESS HERETO, the undersigned have executed this Agreement.
DATED this _____ day of ______________, _______.
CORPORATE APPLICANT / LENDER [INVESTMENT CORPORATION]
SPECIFICATION OF INTEREST AND RATE OF RETURN
The returns in the contract are quoted as net returns to the Lender. All broker and intermediary fees and
expenses are paid under a separate contract between [Holdingco] and the brokers. The Lender is
discouraged from directly compensating anyone.
The schedule of available net returns to the Lender in this contract are listed as follows:
PRINCIPAL RATE OF RETURN
From $20,000 to $40,000 ___% per month
From $40,000 to $60,000 ___% per month
From $60,000 to $80,000 ___% per month
From $80,000 to $100,000 ___% per month
From $100,000 to $500,000 ___% per month
From $500,000 to $1,000,000 ___% per month
From $1,000,000 to $2,000,000 ___% per month
From $2,000,000 to $3,000,000 ___% per month
From $3,000,000 to $4,000,000 ___% per month
From $4,000,000 to $5,000,000 ___% per month
Special “Case by Case” on $5M and up. No
In the attached sample contract, the Lender has requested participation in the amount of
Therefore, the rate of return under this contract shall be ________% for twelve months (unless
supplemented or extended).
DATED this _____ day of ______________, _______.
[LENDER] [INVESTMENT CORPORATION]
DECLARATION OF TRUST
Private and Confidential
From: [Investment Corporation]
Subject: Declaration of Trust
[Investment Corporation] (“[Investment Co.]”), an International Business Corporation, duly incorporated
under the laws of [jurisdiction], as Lender as evidenced by [transaction no.], does hereby acknowledge
and declare that it entered into a certain agreement dated the _____ day of ______________, _______
between [Holdingco], a Limited Liability Company duly incorporated under the laws of the State of
[state] (hereinafter “[Holdingco]”), as Borrower. Whereby [Holdingco] purchased or caused to be
purchased certain US Treasury Obligations in a bloc amount of $[amount] USD, identified by CUSIP
registration Number [CUSIP no.] which are deposited in a Master Custodial Account in Account Number
[acct no.] and the said obligations are held in trust f