Item 1.01 Entry into a Material Definitive Agreement.
Effective as of October 25, 2022, ADM Endeavors, Inc., a Nevada corporation (the
"Company"), and Just Right Products, Inc., the Company's Texas subsidiary (the
"Subsidiary," and together with the Company, the "Borrowers"), entered into a
Construction Loan Agreement (the "Loan Agreement") with, and issued an
accompanying Promissory Note (the "Note") to, CapTex Bank, a Texas banking
association (the "Lender"), pursuant to which the Lender agreed to loan up to
$4,618,960 to the Borrowers for the construction of improvements on and
refinance of the Borrowers' approximately 18-acre real properties located at
1900 East Loop 820 Fort Worth, Tarrant County, Texas, 76112 (the "Property"), as
well as the real property leased to the Subsidiary and used by the Company as
its headquarters located at 5941 Posey Lane, Haltom City, Tarrant County, Texas,
76117.
Pursuant to Loan Agreement and Note, the Borrowers agreed to (i) pay interest on
amounts advanced to the Borrowers under the Loan Agreement at the rate of 5.5%
per annum, subject to adjustment on October 25, 2027, to 1% over the U.S. prime
rate (subject to a cap at the lesser of 18% or the maximum amount permitted by
law); (ii) make monthly payments of interest to the Lender beginning on November
25, 2022, through and including April 25, 2024, and thereafter beginning on May
25, 2024, monthly principal and interest payments in the amount of $26,458.87,
through and including October 25, 2032 (the "Maturity Date"), on which Maturity
Date all unpaid principal and interest shall be due; and (iii) pay an
origination fee to the Lender in the amount of $46,189.60 plus reasonable
attorney fees.
The Borrowers' obligations to the Lender under the Loan Agreement and Note are
secured by Deeds of Trust to the Property executed by the Borrowers in favor the
Lender, as well as the personal guaranty of Marc Johnson, President and CEO of
the Company.
The foregoing description of the Loan Agreement and Note is qualified by
reference to the full text of the Loan Agreement and Note, which are filed
herewith as Exhibits 10.1 and 10.2, respectively, and incorporated by reference
into this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The disclosure in Item 1.01 above is incorporated by reference in this Item
2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
10.1 Construction Loan Agreement, dated as of October 25, 2022, by and
among ADM Endeavors, Inc., Just Right Products, Inc., and CapTex
Bank
10.2 Promissory Note, dated as of October 25, 2022, by ADM Endeavors,
Inc., and Just Right Products, Inc., in favor of CapTex Bank
104 Cover Page Interactive Data File (Embedded within the Inline XBRL
document and included in Exhibit)
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