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Electronic Processing, Inc. Industrial State Bank Loan Number ___________________
A Missouri C corporation 00xx & Xxxxxx Xxxxxx Date March 4, 1997
501 Kansas Avenue P.O. Box 6007 Maturity Date March 4, 1998
Kansas City, Kansas 66105-1309 Xxxxxx Xxxx, Xxxxxx 00000 Loan Amount $ 500,000.00
Renewal Of ____________________
BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS
"I" includes each borrower "You" means the lender, its
above, jointly and severally. successors and assigns.
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I promise to pay to you, or your order, at your address listed above the
PRINCIPAL sum of Five hundred thousand dollars and No/100 Dollars $500,000.00
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/ / Single Advance: I have received all of this principal sum. No
additional advances are contemplated under this note.
/X/ Multiple Advance: The principal sum shown above is the maximum amount
of principal I can borrow under this note. As of today I have
received the amount of $____________ and future principal
advances are contemplated.
Conditions: The conditions for future advances are _______________
/X/ Open End Credit: You and I agree that I may borrow up to the
maximum amount of principal more than one time. This feature
is subject to all other conditions and expires no later than
____________________, __________.
/ / Closed End Credit: You and I agree that I may borrow up to the
maximum only one time (and subject to all other conditions).
PURPOSE: The purpose of this loan is to provide a line of credit for working
capital.
INTEREST: I agree to pay interest (calculated on a 365/actual days basis) on
the principal balance(s) owing from time to time as stated below.
/ / Fixed Rate: I agree to pay interest at the fixed, simple rate of
_____________ % per year.
/X/ Variable Rate: I agree to pay interest at the initial simple rate of
9.25% per year. This rate may change as stated below.
/X/ Index Rate: The future rate will be 1% in excess of the
following index rate: Industrial State Bank's base lending
rate per annum
/ / No index: The future rate will not be subject to any internal
or external index. It will be entirely in your control.
/X/ Frequency and Timing: The rate on this note may increase as
often as quarterly.
An increase in the interest rate will take effect
quarterly beginning June 4, 1997 and on the 4th day
of each quarter thereafter.
/ / Limitations: The rate on this note will not at any time (and no
matter what happens to any index rate used) go above or below these
limits:
/ / Maximum Rate: The rate will not go above ___________
/ / Minimum Rate: The rate will not go below ____________
Post Maturity Rate: I agree to pay interest on the unpaid balance of this
note owing after maturity, and until paid in full, as
stated below:
/ / on the same fixed or variable rate basis in effect before maturity
(as indicated above).
/X/ at a rate equal to 5% in excess of the otherwise applicable rate
hereon at the time of default.
/ / ADDITIONAL CHARGES: In addition to interest, I / / have paid / / agree to
pay the following additional charges _________________________________________
PAYMENTS: I agree to pay this note as follows:
/X/ Interest: I agree to pay accrued interest quarterly beginning
June 4, 1997 and on the 4th day of each succeeding quarter thereafter
until maturity March 4, 1998.
/X/ Principal: I agree to pay the principal March 4, 1998
/ / Installments: I agree to pay this note in _________ payments. The
first payment will be in the amount of $ _________________ and will
be due ____________. A payment of $ ____________ will be due on the
_____________ day of each _________________ thereafter. The final
payment of the entire unpaid balance of principal and interest will
be due ______________.
/ / Effect of Variable Rate: An increase in the interest rate will have
the following effect on the payments:
/ / The amount of each scheduled payment will be increased.
/ / The amount of the final payment will be increased.
/ / ___________________________________________________________________
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NOTICE TO BORROWER: This written agreement is the final expression of the
agreement between you and the Lender, and as such it may not be contradicted
by evidence of any prior oral agreement or of a contemporaneous oral agreement
between you and the Lender.
ADDITIONAL TERMS: NONE INDUSTRIAL STATE BANK ELECTRONIC PROCESSING, INC.
AFFIRMATION: By signing or initialing here, Borrower & Lender affirm that no
unwritten oral agreement between them exists.
X [ILLEGIBLE] X [ILLEGIBLE]
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Pres (Lender) CEO (Borrower(s))
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/xx/ SECURITY: This note is secured by: Accounts receivable and contract
rights as per the Security Agreement of even date.
/ / If checked, no agreement was signed today securing this note.
(This note is secured by any agreement listed above and any other agreement
to the extent permitted by law.)
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SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON THE OTHER
SIDE). I have received a copy on today's date.
ELECTRONIC PROCESSING, INC.
a Missouri C corporation
By: /s/ Xxx X. Xxxxxxx
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Xxx X. Xxxxxxx, CEO
Signed: Xxxxxxx Xxxxxxx for Lender, Title: V. President
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ADDITIONAL TERMS
APPLICABLE LAW: The law of the state of Kansas will govern this note. Any
term of this note which is contrary to applicable law will not be
effective, unless the law permits you and me to agree to such a variation.
PAYMENTS: Each payment I make on this note will first reduce the amount I owe
you for charges which are neither interest nor principal. The remainder of
each payment will then reduce unpaid earned interest, and then unpaid
principal. If you and I agree to a different application of payments, we
will describe our agreement on this form.
INTEREST: If I receive the principal in more than one advance, each advance
will start to earn interest only when I receive the advance. The interest
rate in effect on this note at any given time will apply to the entire
principal advanced at that time. If the interest rate on this note is
variable, decreases in the interest rate will have the corresponding
opposite effect on my payment that increases will have (as shown on the
front of this form). No matter how the interest rate is computed, it will
never be higher than the highest rate allowed by law.
INDEX RATES: If you and I have agreed that the interest rate on this note
will be variable and will be related to an index rate, then the index we
select will function only as a tool for setting the rate on this note.
You do not guarantee, by selecting any index, that the rate on this note
will have a particular relationship to the rate you charge on any other
loans or any type of class of loans with your other customers.
SINGLE ADVANCE LOANS: If this is a single advance loan, you and I expect that
you will make only one advance of principal. However, you may add other
amounts to the principal if you make any payments described in the
"PAYMENTS BY LENDER" paragraph below.
MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I expect
that you will make more than one advance of principal.
If this is closed end credit, then repaying a part of the principal will
not entitle me to additional credit.
If this is open end credit, then repaying a part of the principal will
entitle me to additional credit, unless the open end feature has expired.
You will not ordinarily make an advance if it would cause the unpaid
principal amount to become greater than the maximum principal amount, or
if the unpaid principal amount is already greater than the maximum principal
amount. You will never be obligated to make such an advance, even if you
occasionally do so.
PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges I am
obligated to pay (such as property insurance premiums), then you may treat
those payments as advances and add them to the unpaid principal under this
note.
POST MATURITY RATE: For purposes of deciding when the "Post Maturity Rate"
(shown on the other side) applies, the term "maturity" means the
following:
(1) if the note is payable on demand, the date you make your
demand;
(2) if the note is payable on demand with an alternate maturity
date(s), the date you make your demand or the final alternate
maturity date or the date you accelerate payment on the note,
whichever is earlier; and
(3) in all other cases, the date of the last scheduled payment of
principal or the date you accelerate payment on the note, whichever
is earlier.
SET-OFF: You have the right to set-off any amount I owe you under this note
against any right I have to receive money from you. If my right to receive
money from you is owned by someone else not paying this note, your set-off
can only reach funds I could have reached with my own request or
endorsement. Your right of set-off does not extend to accounts where my
rights are only as a fiduciary. It also does not extend to my XXX or
other tax-deferred retirement account.
Your right of set-off applies without your first telling me you are going
to use it. It applies no matter what sort or value of collateral is on this
loan. It also applies no matter who else has agreed to pay this note.
You will not be liable for wrongful dishonor of a check where such dishonor
occurs because you set-off this debt against my account.
DEFAULT: I will be in default if any one or more of the following occur:
(1) I fail to make payment on time or in the amount due.
(2) I fail to keep the collateral insured, if required.
(3) I fail to keep any other promise I have made in connection with this
loan.
(4) I fail to pay, or keep any other promise, on any other loan or
agreement I have with you.
(5) Any other creditor of mine attempts to collect the debt I owe him
through court proceedings.
(6) I die.
(7) I go into bankruptcy, whether by my own choice or not.
(8) I do or fail to do something which causes you to believe that you will
have difficulty collecting the amount I owe you.
(9) Anything else happens which causes you to believe that you will have
difficulty collecting the amount I owe you.
REMEDIES: If I am in default on this note, you have the following remedies:
(1) You may demand immediate payment of all I owe you under this note.
(2) You may set-off this debt against any right I have to the payment of
money from you.
(3) You may demand more security or new parties obligated to pay this
note in return for not using any other remedy.
(4) You may make use of any remedy you have under state or federal law.
(5) You may make use of any remedy given to you in any agreement securing
this note.
(6) If this is a multiple advance loan, either open end or closed end,
you may refuse to make advances to me while I am in default:
By selecting any one or more of these remedies you do not give up
your right to later use any other remedy. By deciding not to use any remedy
should I default, you do not waive your right to later consider the event a
default if it happens again.
WAIVER: I give up my rights to require you to do certain things. I will not
require you to:
(1) demand payment of amounts due (presentment);
(2) obtain official certification of nonpayment (protest); or
(3) give notice that amounts due have not been paid (notice of dishonor).
ATTORNEYS' FEES: If you must hire a lawyer to collect this note, I must pay
his or her fee, plus court costs (except where prohibited by law).
SECURITY: This note is secured by any agreement listed on the reverse side
and any other agreement to the extent permitted by law.
ADDITIONAL PARTIES AND SECURITY: I understand that I must pay this note even
if someone else has signed it. You may xxx me, or anyone else, or any of us
together, to collect this note. You do not have to tell me this note has not
been paid. You may release any cosigner and I will still be obligated to pay
the note. If you give up any of your rights it will not affect my duty to pay
this note. Extending new credit or renewing this note will not affect my
duty to pay this note.
FINANCIAL STATEMENTS: I agree to provide to you, upon request, any financial
statements or information you may deem necessary. I warrant that all
financial statements and information I provide to you are or will be
accurate, correct and complete.
PRIVACY: I understand and agree that from time to time you may receive credit
information concerning me from others and furnish credit and experience
information regarding my loan to others seeking such information. Except when
otherwise provided by law, I agree that you will not be liable for any claim
arising from the use of information provided to you by others or for
providing such information to others.
GUARANTEE: By signing below, I unconditionally guarantee the payment of any
amounts owed under this note. I also agree that all the other terms of the
note will apply to me.
X
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X
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DATE OF PRINCIPAL BORROWERS PRINCIPAL PRINCIPAL INTEREST INTEREST INTEREST
TRANSACTION ADVANCE INITIALS PAYMENTS BALANCE RATE PAYMENTS PAID
(not required) THROUGH:
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FORM UN=KS BACKSIDE REVISION DATE 10/3/88
