SEAFIRST BANK
This Business Loan Agreement ("Agreement") is made between Bank of
America NT&SA doing business as Seafirst Bank ("Bank") and The Coeur
d'Alenes Co. and Union Iron Works, Inc. of Spokane * ("Borrower")
with respect to the following: * Washington
Part A
1. 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 under a Non-Revolving Line, available through
expiration of August 1, 1999, at which time the outstanding principal
balance will be converted to a Term Loan, fully amortized over 60
months. Maturity date August 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 0.5 percent of 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.
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.
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(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: N/A payable on N/A. Loan fee is fully earned and
non-refundable upon execution of this Agreement.
(g) Other Fees (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.
2. 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
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: March 1, 1999 through May 1, 2000. However, if
loans will be subject 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
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Bank's cost 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 a 360-day year and applied to the actual number
of days elapsed.
(e) Repayment: At the times and in the amounts as set forth in note(s)
required under Part B Article 1 of this Agreement.
(f) Loan Fee: $1,0000.00 payable on closing.
(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:
__________________________________________________
(i) Collateral. This 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.
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