On July 25, 2014, Z Trim Holdings, Inc. entered into a second amendment to its revolving loan with Fordham Capital Partners, LLC. The amendment increased the principal amount of the Equipment Loan from $582,841.63 to $668,750, 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 $13,679.32 plus interest, from July 25, 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 remains 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 (such six-month period, the Guaranteed Interest Period), it must pay a prepayment penalty equal to the amount by which (i) the aggregate interest that Fordham would have received on the Note during the Guaranteed Interest Period had there been no prepayment exceeds (ii) the aggregate interest paid by the company prior to the date of prepayment. The default rate of interest on the loan remains 27% per annum.

The amendment represents an approximately $85,900 increase in the outstanding balance of the Equipment Loan as of July 25, 2014. The net proceeds of the increase in the Equipment Loan were used to pay $20,721 to Fordham, representing the July 24, 2014 note payment of principal and interest owed by the company to Fordham under the Equipment Loan. The company intends to use the remaining proceeds for working capital.