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EXHIBIT 10.1(b)
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APPROVED BY:
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Officer Name Officer No. Dept./Branch Name
▇▇▇▇ ▇▇▇▇▇▇▇▇ 269181 COMMERCIAL BANKING GROUP
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Dept./Branch No. Account No. Commitment No. Note No. Class
781 7938640665 273 281
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Loan $ Name
1,000,000.00 ▇▇▇▇▇▇ STEEL COMPANY, AN ARIZONA CORPORATION
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Rate Interest From Renewal of Note
BOAZ PRIME + 0.25% TO MOVE WITH PRIME JUNE 30, 1996
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Collateral
S/A - A/R , INVENTORY; S/A - EQUIPMENT
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BANK ONE, ARIZONA, NA
REVOLVING LINE OF CREDIT NOTE
VARIABLE RATE
Phoenix, Arizona June 30, 1996
FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to pay on or
before June 29, 1997 to BANK ONE, ARIZONA, NA, a national banking association,
("Bank"), or order, the aggregate principal amount outstanding on Borrower's
revolving line of credit as shown on Bank's records which shall at all times be
conclusive and govern, with interest payable monthly on the unpaid balance
outstanding from time to time at an annual rate equal to one quarter percent
(0.25%) more than the rate of interest publicly announced by BANK ONE, ARIZONA,
NA, as its "prime rate", as such rate shall change from time to time during the
term hereof. Interest is to be charged on a daily basis for the actual number of
days the principal is outstanding from the date of disbursement to date of
maturity. The rate of interest agreed to shall include the interest rate as
shown above, in accordance with the terms of this note, plus any compensating
balance requirement and any additional charges, costs and fees incident to this
loan to the extent they are deemed to be interest under applicable Arizona law.
It is expressly agreed by Borrower that the maximum outstanding principal at any
one time on this note shall not exceed the amount of ONE MILLION AND 00/100
DOLLARS ($1,000,000.00), and the amount outstanding on this note at any specific
time shall be the total amount advanced hereunder by Bank less the amount of
principal payments made hereon from time to time by Borrower. All amounts
payable hereunder shall be paid in lawful money of the United States. Should the
rate of interest as calculated under this note exceed that allowed by law, the
applicable rate of interest will be the maximum rate of interest allowed by
applicable law.
Principal and interest shall be payable at the Commercial Banking Center
office of Bank One, Arizona, NA in Phoenix, Arizona, or at such other place as
the holder hereof may designate. At Bank's option, any payments may be applied
first to accrued interest and then to principal. All past-due payments of
principal or interest shall bear interest from their due date until paid at a
rate of interest 2% per annum higher than the interest rate specified above or
12% per annum, whichever is higher, payable on demand.
This note shall become immediately due and payable at the option of the
holder hereof without presentment or demand or any notice to Borrower or any
other person obligated hereon, upon default in the payment of any of the
principal hereof or any interest thereon when due, or in payment under any other
agreement between Borrower and Bank, or if any event occurs or condition exists
which authorized the acceleration of the maturity hereof under any security
agreement, mortgage, deed of trust or other agreement made by Borrower in favor
of Bank. Failure to exercise this option shall not constitute a waiver of the
right to exercise the same in the event of any subsequent default.
In the event any holder hereof utilizes the services of an attorney in
attempting to collect the amounts due hereunder or to enforce the terms hereof
or of any agreements related to this indebtedness, or if any holder hereof
becomes party plaintiff or defendant in any legal proceeding in relation to the
property described in any instrument securing this note or for the recovery or
protection of the indebtedness evidenced hereby, Borrower, its successors and
assigns, shall repay to such holder hereof, on demand, all costs and expenses so
incurred, including reasonable attorneys' fees, including those costs, expenses
and attorneys' fees incurred after the filing by or against the Borrower of any
proceeding under any chapter of the Bankruptcy Act, or similar federal or state
statute, and whether incurred in connection with the involvement of any holder
hereof as creditor
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in such proceedings or otherwise.
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Borrower and all sureties, endorsers and guarantors of this note waive
demand, presentment for payment, notice of non-payment, protest, notice of
protest and all other notice, filing of suite and diligence in collecting this
note or the release of any party primarily or secondarily liable hereon and
further agree that it will not be necessary for any holder hereof, in order to
enforce payment of this note by any of them, to first institute suit or exhaust
its remedies against any maker or others liable herefor, and consent to any
extension or postponement of time of payment of this note or any other
indulgence with respect hereto without notice thereof to any of them.
Bank and Borrower will establish specific instructions and procedures by
which draws against said credit will be presented for disbursement, but nothing
contained herein shall create a duty on the part of Bank to make said
disbursement if Borrower is in default.
Address:
▇.▇. ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
▇▇▇▇▇▇ STEEL COMPANY,
an Arizona corporation
By____________________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Chairman
Borrower's Signature
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