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17.4 Sharing of Information with Affiliates. Each Loan Party hereby consents to the sharing of
information concerning or provided by each Loan Party or its affiliates by and among Lender, U.S. Bancorp, and their present and future affiliates, and their respective present and future officers,
directors, employees, agents and advisors.
17.5 Integration; Conflicting Terms. This Agreement together with the other Loan Documents comprises
the entire agreement of the parties on the subject matter hereof and supersedes and replaces all prior agreements, oral and written, on such subject matter. If any term of any of the other Loan
Documents expressly conflicts with the provisions of this Agreement, the provisions of this Agreement shall control; provided, however, that the inclusion of supplemental rights and remedies of Lender
in any of the other Loan Documents shall not be deemed a conflict with this Agreement.
17.6 Assignment and Participation. Lender may from time to time assign or sell participating interests
in all or any part of its interest in this Agreement, the Notes and the other Loan Documents.
17.7 Successors and Assigns. This Agreement and the other Loan Documents shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns, except that no Loan
Party may assign or transfer any of its rights or obligations under any Loan Document without the prior written consent of Lender.
17.8 Severability. If any provision of this Agreement or any of the Loan Documents is held invalid
under any applicable laws, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision.
17.9 Governing Law. Except to the extent that Lender has greater rights and remedies under federal law,
this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Oregon without regard to conflicts of law principles (except that matters concerning the
validity and perfection of security interests covered thereby shall be governed by the conflicts of law provisions of the Uniform Commercial Code).
17.10 Additional Acts. Upon request by Lender, each Loan Party will from time to time provide such
information, execute such documents and do such acts as may reasonably be required by Lender in connection with any indebtedness or obligations of any of them to Lender.
17.11 Documents Satisfactory to Lender. All information, documents and instruments required to be
executed or delivered to Lender shall be in form and substance satisfactory to Lender.
17.12 Exhibits. All Exhibits referred to herein are attached hereto and hereby incorporated by
reference as if fully set forth herein.
17.13 Computations. All interest rates and fees referred to herein shall be computed on the basis of a
360-day year and applied to the actual number of days elapsed.
17.14 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall
be deemed to be an original, and all of said counterparts taken together shall constitute one document.
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17.15 Year 2000. Each Loan Party has reviewed and assessed its business operations and computer systems
and applications to address the "year 2000 problem" (that is, that computer applications and equipment used by it, directly or indirectly through third parties, may be unable to properly perform
date-sensitive functions before, during and after January 1, 2000). Each Loan Party reasonably believes that the year 2000 problem will not result in a material adverse change in its business
condition (financial or otherwise), operations, properties or prospects or ability to repay Lender. Each Loan Party is in the process of implementing a plan to remediate year 2000 problems and will
complete implementation of such plan with respect to any material year 2000 problems, and testing thereof, by September 30, 1999. Each Loan Party agrees that this representation will be true
and correct on and shall be deemed made by it on each date it requests any Advance or delivers any information to Lender. Each Loan Party will promptly deliver to Lender such information relating to
this representation and covenant as Lender requests from time to time.
17.16 Waiver of Jury Trial. EACH LOAN PARTY AND LENDER WAIVE ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR (b) ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT, AND EACH AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
17.17 Disclosure.
Under Oregon law, most agreements promises and commitments made by lenders after October 3, 1989, concerning loans and other credit extensions which are
not for personal, family or household purposes or secured solely by the borrower's residence must be in writing, express consideration and be signed by the lender to be
enforceable.
Each Loan Party acknowledges receipt of a copy of this Agreement.
LITHIA FINANCIAL CORPORATION
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| LITHIA SALMIR, INC.
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By:
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By:
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Title:
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Title:
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LITHIA MOTORS, INC.
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U.S. BANK NATIONAL ASSOCIATION
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By:
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By:
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Title:
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Title:
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EXHIBIT A PROMISSORY NOTE
$10,000,000
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LITHIA FINANCIAL CORPORATION
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("Borrower")
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U.S. BANK NATIONAL ASSOCIATION
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("Lender")
1. TYPE OF CREDIT. This note is given to evidence Borrower's obligation to repay all sums which Lender
may from time to time advance to Borrower ("Advances") under a revolving line of credit. No Advances shall be made which create a maximum amount outstanding at any one time which exceeds the maximum
amount shown in Section 2. However, Advances hereunder may be borrowed, repaid and reborrowed, and the aggregate Advances loaned hereunder from time to time may exceed such maximum amount.
2. PRINCIPAL BALANCE. The unpaid principal balance of all Advances outstanding under this note
("Principal Balance") at one time shall not exceed $10,000,000.
3. PROMISE TO PAY. For value received Borrower jointly and severally promises to pay to Lender or order
at Dealer Commercial Services, 00000 X.X. 0xx, Xxxxx 000, Xxxxxxxx, Xxxxxxxxxx 00000 or such other address as Lender may designate, the Principal Balance of this note, with
interest thereon at the rate(s) specified in Sections 4 and 11 below.
4. INTEREST RATE. The interest rate on the Principal Balance outstanding may vary from time to time
pursuant to the provisions of this note. Subject to Sections 4(b)(iii), 4(b)(iv) and 11, interest shall accrue on the Principal Balance of this note from time to time at a per annum rate
equal to the LIBOR Borrowing Rate.
(a) Definitions. The following terms shall have the following meanings:
"Business
Day" means any day other than a Saturday, Sunday, or other day that commercial banks in Portland, Oregon, Minneapolis, Minnesota, Seattle, Washington or New York City are
authorized or required by law to close; provided, however that when used in connection with the LIBOR Rate, such term shall also exclude any day on which dealings in U.S. dollar deposits are not
carried on in the London interbank market.
"Dow
Xxxxx Page 3750" means the display designated as such on the Dow Xxxxx Markets Service (formerly known as Telerate) (or such other page as may replace page 3750 on
that service for the purpose of displaying London interbank offered rates of major banks for United States Dollar deposits).
"LIBOR
Rate" means, for any day, (the "Current Day"), the average offered rate for deposits in United States Dollars (rounded upwards to the nearest 1/16 of 1%) for delivery of such
deposits on the Current Day for the one-month period commencing on the Current Day, which appears on Dow Xxxxx Page 3750 as of 11:00 a.m. London time (or such other time as of which such
rate appears) on the day that is two Business Days preceding the Current Day; or the rate for such deposits determined by
Lender at such time based on such other published service of general application as shall be selected by Lender for such purpose; provided that in lieu of determining the rate in the foregoing manner,
Lender may determine the rate based on the rates offered to Lender for deposits in United States Dollars (rounded upwards to the nearest 1/16 of 1%) in the interbank eurodollar market at such time for
delivery on the Current Day for the one-month period commencing on the Current Day; and provided, further, that in any case the LIBOR Rate shall be adjusted to take into account the maximum reserves
required to be maintained for Eurocurrency liabilities by banks as specified in Regulation D of the Board of Governors of the Federal Reserve System or any successor regulation.
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The LIBOR Rate for any day which is not a Business Day shall be the LIBOR Rate in effect on the immediately preceding Business Day. When the LIBOR Rate is applicable, the interest rate hereunder shall
be adjusted without notice effective on the day the LIBOR Rate changes, but in no event shall the rate of interest be higher than allowed by law.
"Prime
Rate" means the rate of interest which Lender from time to time establishes as its prime or reference rate and is not, for example, the lowest rate of interest which Lender
collects from any borrower or class of borrowers. When the Prime Rate is applicable, the interest rate hereunder shall be adjusted without notice effective on the day the Prime Rate changes, but in no
event shall the rate of interest be higher than allowed by law.
"Prime
Borrowing Rate" means a variable per annum rate equal to the Prime Rate.
(b) The LIBOR Borrowing Rate.
(i) The
LIBOR Borrowing Rate is a variable per annum rate equal to the LIBOR Rate plus 2.25%.
(ii) Any
request for an Advance shall be made in accordance with the provisions of Section 14.
(iii) If
at any time the LIBOR Rate is unascertainable or unavailable to Lender or if LIBOR Rate loans become unlawful, the LIBOR Borrowing Rate shall terminate
automatically and immediately, and unless the Default Rate is applicable, the Prime Borrowing Rate automatically shall become effective upon such termination.
(iv) If
at any time after the date hereof (A) any revision in or adoption of any applicable law, rule, or regulation or in the interpretation or administration
thereof (i) shall subject Lender or its Eurodollar lending office to any tax, duty, or other charge, or change the basis of taxation of payments to Lender with respect to any loans bearing interest
based on the LIBOR Rate, or (ii) shall impose or modify any reserve, insurance, special deposit, or similar requirements against assets of, deposits with or for the account of, or credit
extended by Lender or its Eurodollar lending office, or impose on Lender or its Eurodollar lending office any other condition affecting any such loans, and (B) the result of any of the
foregoing is (i) to increase the cost to Lender of making or maintaining any such loans or (ii) to reduce the amount of any sum receivable under this note by Lender or its Eurodollar
lending office, Borrower shall pay Lender within 15 days after demand by Lender such additional amount as will compensate Lender for such increased cost or reduction. The determination hereunder by
Lender of such additional amount shall be conclusive in the absence of manifest error. If Lender demands compensation under this Section 4(b)(iv), Borrower may, upon payment of such additional amount,
unless the Default Rate is applicable, elect to have the Prime Borrowing Rate apply to the Principal Balance of this note.
(v) If
the LIBOR Borrowing Rate is in effect, Borrower shall pay interest based on such rate, plus any other applicable taxes or charges hereunder, even though Lender
may have obtained the funds loaned to Borrower from sources other than the London interbank market. Lender's determination of the LIBOR Borrowing Rate and any such taxes or charges shall be conclusive
in the absence of manifest error.
5. COMPUTATION OF INTEREST. All interest on this note will be computed at the applicable rate based on
a 360-day year and applied to the actual number of days elapsed.
6. PAYMENT SCHEDULE.
(a) Principal. Principal shall be paid on June 30, 2001.
(b) Interest. Interest shall be paid on the day of , 1999, and on
the same day of each month thereafter prior to maturity and at maturity.
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7. PREPAYMENT. Prepayments may be made at any time without penalty. Principal prepayments will not
postpone the date of or change the amount of any regularly scheduled payment. At the time of any principal prepayment, all accrued interest, fees, costs and expenses shall also be paid.
8. CHANGE IN PAYMENT AMOUNT. Each time the interest rate on this note changes the holder of this note
may, from time to time, in holder's sole discretion, increase or decrease the amount of each of the installments remaining unpaid at the time of such change in rate to an amount holder in its sole
discretion deems necessary to continue amortizing the Principal Balance at the same rate established by the installment amounts specified in Section 6(a), whether or not a "balloon" payment may also
be due upon maturity of this note. Holder shall notify the undersigned of each such change in writing. Whether or not the installment amount is increased under this Section 8, Borrower understands
that, as a result of increases in the rate of interest the final payment due, whether or not a "balloon" payment, shall include the entire Principal Balance and interest thereon then outstanding, and
may be substantially more than the installment specified in Section 6.
9. ALTERNATE PAYMENT DATE. Notwithstanding any other term of this note, if in any month there is no day
on which a scheduled payment would otherwise be due (e.g. February 31), such payment shall be paid on the last banking day of that month.
10. PAYMENT BY AUTOMATIC DEBIT. Borrower hereby authorizes Lender to automatically deduct the amount of
all principal and interest payments from account number with Lender. If there are insufficient funds in the account to pay the automatic deduction in full, Lender may allow the
account to become overdrawn, or Lender may reverse the automatic deduction. Borrower will pay all the fees on the account which result from the automatic deductions, including any overdraft and
non-sufficient funds charges. If for any reason Lender does not charge the account for a payment, or if an automatic payment is reversed, the payment is still due according to this note. If the
account is a Money Market Account, the number of withdrawals from that account is limited as set out in the account agreement. Lender may cancel the automatic deduction at any time in its discretion.
Provided,
however, if no account number is entered above, Borrower does not want to make payments by automatic debit.
11. DEFAULT.
(a) Any
Event of Default under the Loan Agreement shall be an event of default hereunder.
(b) Without
prejudice to any right of Lender to require payment on demand, upon the occurrence of an event of default, Lender may terminate all commitments to lend,
cease making Advances and declare the entire unpaid Principal Balance on this note and all accrued unpaid interest immediately due and payable, without notice; provided, however, that if any
proceeding under any bankruptcy or insolvency laws is commenced by or against Borrower, all commitments to lend shall be immediately terminated without notice and the entire Principal Balance and all
accrued, unpaid interest shall, without notice, become immediately due and payable. Upon default, including failure to pay upon final maturity, Lender, at its option, may also, if permitted under
applicable law, increase the interest rate on this note by 2% per annum ("Default Rate"). The interest rate will not exceed the maximum rate permitted by applicable law. In addition, if any payment of
principal or interest is 19 or more days past due, Borrower will be charged a late charge of 5% of the delinquent payment.
12. EVIDENCE OF PRINCIPAL BALANCE; PAYMENT ON DEMAND. Holder's records shall, at any time, be
conclusive evidence of the unpaid Principal Balance and interest owing on this note. Notwithstanding any other provisions of this note, in the event holder makes Advances hereunder which result in an
unpaid Principal Balance on this note which at any time exceeds the maximum amount specified in Section 2, Borrower agrees that all such Advances, with interest, shall be payable on demand.
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13. DEMAND NOTE. | | |