AMENDMENT TO ACCOUNTS RECEIVABLE
SECURITY AGREEMENT
FOR A VALUABLE CONSIDERATION, First Community Financial Corporation, an Arizona
corporation (FCFC) and Xxxxx Brothers Arizona, Inc. Fka Xxxxx Brothers
Southwest, Inc., an Arizona corporation (Borrower) do hereby agree to amend the
following paragraphs of that certain Accounts Receivable Security Agreement
dated July 26, 1996, between the parties (as the same may have been amended from
time to time) and executed by the aforementioned parties, in the following
respects:
Paragraph 2.2 shall be amended as follows:
2.2 Effective January 1, 1997, the Obligations of Borrower to FCFC
shall bear interest, for the actual days outstanding at a rate equal to the
Prime Rate plus 3.5 % per annum, computed on the basis of a 360-day year for
actual days elapsed. The Prime Rate of 8.25% is the rate in effect as of this
date. In the event of changes in the Prime Rate from time to time, the rate of
interest to be charged to Borrower shall be correspondingly adjusted as of the
date of the Prime Rate change. Notwithstanding the foregoing, in no event shall
the interest rate chargeable hereunder be less than 11.75% per annum. Interest
is due and payable to FCFC under this Agreement on the first day of each month.
Any interest not paid when due shall become a part of Borrower's Obligations
under this Agreement, and shall thereafter bear interest as provided herein.
FCFC shall render statements to Borrower of the Obligations,
including all principal, interest and FCFC's Costs owing, and such statements
shall be conclusively presumed to be correct and accurate and constitute an
account stated between Borrower and FCFC unless, within thirty (30) days after
receipt thereof by Borrower, Borrower notifies FCFC in writing specifying the
error or errors, if any, contained in any such statements.
Paragraph 2.5 shall be amended as follows:
2.5 Effective January 1, 1997, in order to further induce FCFC to grant
the Credit Facility to Borrower, Borrower agrees that the minimum amount of
interest to be paid monthly by Borrower to FCFC, during the original and each
renewal term of this Agreement, shall not be less than $500 per month.
Notwithstanding any default by Borrower, or a termination of this Agreement by
FCFC because of such default, this minimum interest shall be charged to and paid
by Borrower for the unexpired term of this Agreement. In the event the monthly
interest earned by FCFC on advances made by FCFC to Borrower under this
Agreement is less than the minimum set forth above, Borrower will pay to FCFC
such difference at the same time as such accrued interest is due and payable.
Except as amended hereby, all other terms and provisions of the Accounts
Receivable Security Agreement (as the same may have been amended from time to
time) shall continue in full force and effect and are hereby ratified, confirmed
and approved.
Dated this 30th day of December, 1996.
Agreed & Accepted Agreed & Accepted
Xxxxx Brothers Arizona, Inc. First Community Financial Corporation
Fka Xxxxx Brothers Southwest, Inc., an Arizona corporation
an Arizona corporation
By: /s/ Xxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx, President and Xxxxx X. Xxxxxxx, President
Chief Executive Officer
ACKNOWLEDGMENT & CONSENT OF GUARANTORS
Xxxxx Brothers, Inc. Fka Xxxxx Brothers Distributing, Inc.
Xxxxx Brothers Holdings, Inc. an Arizona corporation
By: /s/ Xxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx Xxxxx X. Xxxxxxx
Its: President and Chief Executive Its: President and Chief Executive
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Officer Officer
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