Attached files
| file | filename |
|---|---|
| 10-K - FORM 10-K - DIAMONDHEAD CASINO CORP | g22898e10vk.htm |
| EX-31.1 - EX-31.1 - DIAMONDHEAD CASINO CORP | g22898exv31w1.htm |
| EX-32.2 - EX-32.2 - DIAMONDHEAD CASINO CORP | g22898exv32w2.htm |
| EX-31.2 - EX-31.2 - DIAMONDHEAD CASINO CORP | g22898exv31w2.htm |
| EX-32.1 - EX-32.1 - DIAMONDHEAD CASINO CORP | g22898exv32w1.htm |
Exhibit 10.6
TERM SHEET FOR $1,000,000.00 LINE OF CREDIT
Lender: |
[REDACTED] | |
Borrower:
|
Diamondhead Casino Corporation (“DHCC”) | |
Description of Loan:
|
Type: Draw Down Line of Credit (LOC) | |
Maturity:
|
November 1, 2012 | |
Interest:
|
9% per annum calculated on the number of days advances are outstanding using a 365 day year. | |
Repayment:
|
Interest only on outstanding principal amount of the Loan shall be due and payable quarterly. All outstanding principal, interest, fees, charges and other amounts are due at Maturity. | |
Advances:
|
In increments of not less than $50,000.00 with 5 business days notice given either by email, U.S. mail, or by fax. | |
Collateral:
|
None-LOC will be unsecured. | |
Up Front Inducement:
|
Upon execution of this Agreement, Lender will be entitled to 50,000 options to purchase common stock of DHCC at $1.75 per share. | |
Stock Option:
|
In addition to the Up Front Inducement, Lender shall have the right to purchase a maximum of 250,000 shares of common, stock of DHCC at a purchase price of $1.75 per share based upon the amount drawn down by Borrower. For example, if the Borrower borrows only $500,000.00 of the $1,000,000.00 LOC, then the Lender would have the right to purchase shares of DHCC common stock based on the proportional amount borrowed ($500,000 divided by $1,000,000 x 250,000 shares equals 125,000 shares.) The Stock Purchase Option shall contain piggyback registration rights and anti-dilution provisions. All 300,000 options herein shall be exercisable prior to repayment in full by Borrower of the amount borrowed. | |
Governing Law:
|
Loan document shall be governed by Maryland law. |
BORROWER:
|
LENDER: | |
/s/ Deborah A. Vitale
|
[REDACTED] | |
By: Deborah A. Vitale, President
|
||
Date: 10/22/08 |
Date:10/21/08 |