BUSINESS LOAN AGREEMENT
This Seafirst Business Loan Agreement ("Agreement") is made
between Bank of America NT&SA doing business as Seafirst
Bank ("Bank") and The Coeur d'Alenes Co. Inc. and Union
Iron Works, Inc. of Spokane ("Borrower") with respect to
the following:
PART A
I. NON REVOLVING LINE / TERM LOAN #TBA. Subject to the
terms of this Agreement, Bank agrees to lend to Borrower as
follows:
(a) Amount: $150,000.00 under a Non-Revolving Line,
available through expiration of May 1, 1999, at which time
the outstanding principal balance will be converted to a
Term Loan, fully amortized over 60 months. Maturity date
May 1, 2004.
(b) This loan must be closed by (date)
______________________
This loan matures on (date)______________________________
(c) Interest Rate:
[X] Bank's publicly announced Reference Rate plus 0.50
percent of the principal per annum. "Reference Rate" means
the rate of interest publicly announced from time to time
by Bank in San Francisco, California as its "Reference
Rate". The Reference Rate is set based on various factors,
including Bank's costs and desired return, general economic
conditions, and other factors, and is used as a reference
point for pricing some loans. Bank may price loans to its
customers at, above, or below the Reference Rate. Any
change in the Reference Rate shall take effect at the
opening of business on the day specified in the public
announcement of a change in the Reference Rate.
[X] Borrower has the option, at expiration, of converting
this to a fixed rate loan at 2.50% per annum over the
reserve-adjusted fixed rate index quoted by Bank on the
expiration date, rounded upward to the next highest one-
eighth of one percent (0.125%), so long as Borrower is not
in default under the Loan Documents.
(d) Interest Rate Basis: All interest will be calculated
at the per annum interest rate based on a 360-day year and
applied to the actual number of days elapsed.
(e) Repayment: At the times and in amounts as set forth
in note(s) required under Part B Article 1 of this
Agreement.
(f) Loan Fee: $ 375.00 payable on _April 13, 1998.
Loan fee is fully earned and non-refundable upon execution
of this Agreement.
(g) Other Fee(s) (identify):
(h) Collateral. This term loan shall be secured by
a security interest, which is hereby granted, in
favor of Bank on the following collateral: Borrower's
Equipment
Also, collateral securing other loans with Bank may
secure this loan.
II. LINE OF CREDIT # 18. Subject to the terms of this
Agreement, Bank will make loans to Borrower under a [X]
revolving [ ] non-revolving line of credit as
follows:
(a) Total Amount Available: $1,850,000.00__
[X] Subject to the provisions of any accounts
receivable and/or inventory borrowing plan required herein;
it is expressly understood that collateral ineligible for
borrowing purposes is determined solely by Bank.
[ ] Subject to (describe):
(b) Availability period: April 13, 1998 through
May 1, 1999
However, if loans are made and/or new promissory notes
executed after the last date, such advances will be
subject to the terms of this Agreement until repaid in
full unless a written statement signed by the Bank
and Borrower provides otherwise, or a replacement loan
agreement is executed. The making of such
additional advances alone, however, does not constitute a
commitment by the bank to make any further advances or
extend the availability period.
(c) Interest Rate:
[X] Bank's publicly announced Reference Rate plus 0.250
percent of the principal per annum. "Reference Rate" means
the rate of interest publicly announced from time to time
by Bank in San Francisco, California as its "Reference
Rate". The Reference Rate is set based on various factors,
including Bank's costs and desired return, general economic
conditions, and other factors, and is used as a reference
point for pricing some loans. Bank may price loans to its
customers at, above, or below the Reference Rate. Any
change in the Reference Rate shall take effect at the
opening of business on the day specified in the public
announcement of a change in the Reference Rate.
[ ]
(d) Interest Rate Basis. All interest will be calculated
at the per annum interest rate based on 360-day year and
applied to the actual number of days elapsed.
(e) Repayment: At the times and in amounts as set forth
in note(s) required under Part B Article 1 of this
Agreement.
(f) Loan Fee: $ 1,000.00 payable on April 13,
1998.
(g) Fee on Unutilized Portion of Line: On N/A, and every
N/A thereafter, Borrower shall pay a fee based upon the
average daily unused portion of the line of credit. This
fee will be calculated as follows:
(h) Other Fee(s) (identify):
(i) Collateral. This revolving line of credit shall be
secured by a security interest, which is hereby granted, in
favor of Bank on the following collateral: Borrower's
Accounts Receivable and Inventory.
Also, collateral securing other loans with Bank may
secure this loan.