Subordinated Note
July 1, 1994
Page 2
EXHIBIT 10.03
SUBORDINATED NOTE
DATE: July 1, 0000
XXXXXX: $200,000
RATE: 2% Over Prime
TERM: Open
THIS AGREEMENT dated July 1, 1994, between Xxxxxx X. Xxxxx of 00 Xxxxx Xxx
Xxxxx, Xxxxxx, Xxxxxxxxxxx 00000 (hereinafter referred to as "Xxxxx") and Marine
Management Systems, Inc. (hereinafter referred to as "MMS"), an Ohio Corporation
having its chief executive office at 000 Xxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx
00000,
WITNESSETH:
1. The Loan
Pursuant to the terms of this Agreement, Xxxxx does hereby loan $200,000 to
MMS, the receipt of proceeds of which are hereby acknowledged. This
represents the total amount of loan outstanding between Xxxxx and the
Company and supersedes all previous Notes issued by MMS to Xxxxx.
2. Interest
The principal balance of the loan shall bear interest at a per annum rate
of two (2.0) percentage points in excess of the Base Rate of interest
currently in effect.
3. Payment of Interest
Interest will be paid monthly on or about the 15th of each month.
4. Payment of Principal
This Note is subordinated to a loan from People's Bank. No principal may be
paid on the Note without the prior approval of People's Bank. MMS agrees to
pay down the loan as soon as practicable and will use its best efforts to
obtain approval from People's Bank to effect an early retirement of the
Note.
5. Subordination of Note
This loan is subordinated to the loan outstanding to People's Bank.
6. Collateral
Subject to any prior liens, or collateral securing the loan of People's
Bank as well as any outstanding security agreements, running in favor of
third parties, the loan is secured by the general assets of MMS.
7. Loan Retirement Rights
The undersigned agree that payments by the Company to retire the
subordinated indebtedness due to Xxxxxx X. Xxxxx and Xxxxxx X. Story will
be retired as funds are available in proportion to the ratio that the
Subordinated Notes of each bears to the other.
This loan agreement is entered into on this 1st day of July, 1994.
MARINE MANAGEMENT SYSTEMS, INC.
BY: /s/ Xxxxxx X. Story /s/ Xxxxxx X. Xxxxx
---------------------------- -------------------------
President Xxxxxx X. Xxxxx
