On July 16, 2014, Z-Trim Holdings, Inc. amended its revolving loan with Fordham Capital Partners, LLC to increase the principal amount from $500,000 to $582,841.63, evidenced by an Amended and Restated Equipment Revolving Note issued by the company to Fordham. The Note increased the required monthly payments of principal to $12,142.539 plus interest, commencing on July 24, 2014 and continuing until February 24, 2015, followed by a final balloon payment of the entire unpaid principal balance of the Note and all accrued and unpaid interest on March 24, 2015. The interest on the Note was increased to a fixed rate of 22% per annum.

The Note may be prepaid in full at any time; provided that if the company prepays the Note prior to September 24, 2014, it must pay a prepayment penalty equal to the amount by which the aggregate interest that Fordham would have received on the Note during the Guaranteed Interest Period had there been no prepayment exceeds and the aggregate interest paid by the company prior to the date of prepayment. The default rate of interest on the loan was increased to 27% per annum. The company also entered into a First Amendment to Security Agreement, dated July 16, 2014, between the company and Fordham in which the amount of the secured liabilities was increased from $500,000 to $582,841.63.

The amendment represents an approximately $114,000 increase in the outstanding balance of the Equipment Loan as of July 16, 2014. The net proceeds of the increase in the Equipment Loan were used to pay $113,442 in franchise taxes owed by the company to the Secretary of State of the State of Illinois.