NationsBank
NationsBank, N.A. (South) Dated: May 6, 1996
FLOOR PLAN AGREEMENT
This Floor Plan Agreement is entered into by and between NationsBank, N.A
(South) (Bank) ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇ and
European Motors, LLC (Borrower) ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
1. BACKGROUND. Borrower hereby requests Bank to extend to it a line of credit
(Line) to purchase inventory to be secured by Borrower's Collateral
described in paragraph 7 (Collateral). Bank agrees to extend the Line
subject to the terms of this Agreement.
2. THE LINE OF CREDIT. Bank extends to Borrower a Line in the amount of
$6,000,000.00 or such other amount as may be set by Bank from time to time.
Before maturity or demand, Borrower may borrow, repay and reborrow
hereunder at anytime, up to an aggregate amount outstanding at any one time
equal to the principal amount of Note, provided, however, that Borrower is
not in default of any provision of Note, Floor Plan Agreement, Security
Agreement or any other agreement or obligation between Borrower and Bank.
Any sums Bank may Advance in excess of the face amount of the Note shall
also be part of the principal amount the Borrower is obligated to pay Bank
and shall be subject to all the terms of the Note, Security Agreement, and
this Floor Plan Agreement. The Bank's records of the amounts borrowed from
time to time shall be conclusive proof thereof. Borrower acknowledges and
agrees that notwithstanding any provisions of any Note, Floor Plan
Agreement, Security Agreement or any other documents executed in connection
with a Note, Floor Plan Agreement and Security Agreement, the Bank has no
obligation to make any Advance, and that all Advances are at the sole
discretion of Bank.
3. NOTE. Debt under the Line shall be evidenced by Borrower's Floor Plan
Promissory Note (Note).
4. RATE. Debt under the Line shall bear interest as set forth in the Note.
5. DUE DATES.
(a) Unpaid principal and interest hereon shall be due and payable as
set forth in the Note, and as set forth below. Unless Borrower is in
default under the terms of any Security Agreement securing the Note, this
Floor Plan Agreement or any other agreement relating to this Floor Plan
Agreement, upon sale of inventory, Borrower will pay to Bank at the earlier
of Borrower's receipt of payment for that item of inventory or three ( 3 )
business days after that item of inventory is delivered to the customer or
otherwise disposed of, cash in the amount equal to the original amount
advanced less any curtailment payments made with respect to the item sold.
If Borrower is in default at time of sale, all proceeds of sale will
immediately be remitted to Bank and applied to debt hereunder.
(b) Curtailment payments based on the original amount advanced with
respect to specific items of inventory shall be paid from time to time by
Borrower as provided for in Addendum "A" attached hereto and made a part
hereof for all purposes as if copied word for word herein.
6. USE OF LINE AND ADVANCES.
(a) The Advances under this Line shall be exclusively for the purpose
of purchasing inventory to be displayed and demonstrated in conjunction
with the sale of the inventory in the ordinary course of Borrower's
business unless otherwise agreed to in writing by Bank. Borrower agrees not
to use the inventory for any other purpose without the prior written
approval of Bank. The term "Advance" as used in this Agreement shall mean
the dollar amount loaned by Bank on a motor vehicle financed under a floor
plan line of credit and includes but is not limited to any charge against,
debit against, draft against, or draw against the line of credit. Advances
under the Line (Advances) shall be made against and in payment of drafts
drawn on Bank, or in accordance with the written request of Borrower
executed by the person signing this Agreement on behalf of Borrower or a
person hereafter designated in writing by Borrower.
(b) Units of inventory which may be presented as Collateral as well as
the amount of outstanding debt permitted at any one time in connection with
the particular type of Collateral being financed shall be in accordance
with Addendum "B".
(c) Bank may reject as Collateral hereunder any item of inventory
which is received by Borrower in damaged condition. Bank has no obligation
to inspect inventory for damage before paying drafts. If Bank has paid a
draft on damaged inventory, Borrower shall direct the manufacturer to
refund all payments directly to Bank. If the manufacturer fails to make the
refund within thirty (30) days, Borrower shall reduce the debt outstanding
under the Line by the amount Advanced against the damaged item.
(d) Borrower will submit or cause to be submitted to Bank invoices or
bills of sale representing the actual cost to Borrower of the inventory.
Bank may advance an amount equal to Borrower's cost (not to exceed NADA
wholesale value in the case of used motor vehicles) or such part of the
cost thereof as Bank elects at its sole discretion. The Advance may be
disbursed to Borrower or the manufacturer or others from whom Borrower
purchases inventory. Presentation of drafts or other requests for payment
by manufacturers or others from whom Borrower purchases inventory
shall constitute requests by Borrower that Bank lend Borrower the amount of
such drafts or other requests for payment pursuant to this Agreement.
(e) A fee in the amount of $0.00 shall be paid by Borrower for each
unit of inventory presented as Collateral to obtain Advances. The fee shall
be paid monthly by Borrower.
7. COLLATERAL. Borrower hereby grants to Bank a security interest in all of
its inventory of:
_X_ New Motor Vehicles (now existing or hereafter acquired)
_X_ Used Motor Vehicles (now existing or hereafter acquired)
including all parts and accessories added to vehicles, now existing or
hereafter acquired by Borrower, including any such goods as may be leased
or held for leasing, together with any and all accounts and proceeds
arising from the sale, lease or disposition of said property and all
returned, refused and repossessed goods, all monies received from
manufacturers by way of credits, refunds or otherwise with respect to
Collateral, and all proceeds thereof (Collateral) to secure all debt of
Borrower to Bank under any and all present and future Advances of whatever
kind and further including but not limited to the Line and all other debt
and other obligations of Borrower to Bank of any nature now existing or
hereafter arising, including but not limited to debt arising directly
between Borrower and Bank or acquired outright, conditionally or as
Collateral security from another by Bank, absolute or contingent, joint or
several, secured or unsecured, due or not due, contractual or tortious,
liquidated or unliquidated, arising under the operation of law or
otherwise, direct or indirect, whether incurred directly or as part of a
partnership, association or other group, or whether incurred as principal,
surety, indorser, accommodation party or otherwise. Borrower will execute
and deliver any documents, instruments or agreements required by Bank to
evidence debt hereunder, grant, perfect and preserve the security interest,
and otherwise carry out the terms of this Agreement. The security interest
herein described is also evidenced by a Security Agreement between Borrower
and Bank, and in the event of any conflict between the terms hereof and the
terms thereof, the terms hereof will apply.
8. IDENTIFICATION OF COLLATERAL. Without limiting the foregoing general grant
of a security interest, as set forth in the Security Agreement, Collateral
subject to the security interest granted herein shall include but not be
limited to (i) inventory listed on invoices submitted to Bank by
manufacturers attached to drafts submitted by manufacturers for payment,
which drafts Bank pays; and/or (ii) inventory in Borrower's possession set
out on a list submitted by Borrower as Collateral for Advances directly to
Borrower.
9. TITLE DOCUMENTS. Title documents consisting of manufacturers' certificate
of origin,
manufacturers' statement of origin, certificates of title and/or any and
all other title documents for each item of inventory shall be in the
possession of Borrower unless otherwise directed by Bank. In the event Bank
does require possession of title documents, Borrower shall deliver all such
documents to Bank immediately upon demand.
10. PAYMENT OF DRAFTS. From time to time Bank may make Advances hereunder by
direct payment to manufacturers or others, in which event, invoices
submitted by Manufacturers along with drafts paid by Bank shall serve as
evidence of Advances under the Line. Borrower authorizes Bank to pay all
drafts or invoices upon presentation by the manufacturer or others
supplying inventory to Borrower.
11. ATTORNEY-IN-FACT. Borrower hereby irrevocably appoints Bank its
attorney-in-fact, to execute, deliver and file from time to time, in the
name of Borrower or Bank, any trust receipts, security agreements,
promissory notes, financing statements, continuation statements and
amendments thereto, and any and all other documents and instruments that
Bank may require in connection with evidencing and securing debt under this
Agreement and carrying out the provisions hereof, which appointment shall
be deemed to be a power coupled with an interest.
12. QUALITY OF INVENTORY. Borrower shall be responsible for the quantity,
quality, condition and value of the inventory selected by Borrower and
financed under this Agreement. Bank shall have no liability of any nature
because of the failure of any inventory to conform to Borrower's
specifications, and any dispute between the manufacturer or others and
Borrower with respect to such inventory shall not affect Borrower's
obligation to Bank to pay amounts Advanced hereunder.
13. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that:
(a) Borrower has taken all action necessary to make this Agreement and
all other agreements between it and Bank legal, valid and binding
obligations enforceable in accordance with their terms, and Borrower is a:
(i)___ corporation duly organized, existing and in good standing
under the laws of the State of _____________ , that it is licensed to
do business and in good standing in each state in which the property
owned by it or the business transacted by it requires it to be
licensed as a foreign corporation.
(ii) _X_ limited liability company, duly organized, and in good
standing under the laws of the State of Tennessee.
(iii)___ partnership composed of________________________________
__________________________________________
__________________________________________
(iv) sole proprietorship owned by ______________________________
__________________________________________
(b) Borrower is not in default with respect to any agreement between
it and Bank on this date.
(c) All Collateral is owned by Borrower free and clear of any security
interests or encumbrances except those granted pursuant hereto.
(d) Borrower is and will hereafter be not in default under any
agreement with any other party, and the execution and performance of this
Agreement will not be a default under any agreement with any other party by
which Borrower or any of Borrower's property is bound.
(e) Borrower does not do financing of any motor vehicle inventory with
any other source or purchase inventory from any seller on credit except as
set out below:
___________________________________________________________________________
___________________________________________________________________________
________________________________________________________________
_________________________________________________________________
Borrower shall notify Bank immediately in the event it buys inventory of
motor vehicles on credit or enters into any such inventory financing
arrangement with any other source, giving the name and address of the Bank
or seller and details of the purchase or loan.
(f) All financial and other information Borrowers have heretofore
submitted or may hereafter submit is and will be true, complete, and
correct and reflects or will reflect all direct, indirect, and contingent
liabilities.
(g) There has been no material adverse change in the Borrower's
financial condition and operations since the date of Borrowers most recent
financial statements heretofore submitted.
(h) Borrower has and will maintain, at all times, all franchise,
distributor agreements, licenses, permits, and other rights that are
necessary to the conduct of its business.
(i) All representations and warranties set forth herein will be deemed
to be have been made anew with each Advance and shall be continuing in
effect beyond the termination or expiration of this Floor Plan Agreement.
14. COVENANTS. While the Line is in effect, and thereafter while Borrower is
indebted to Bank, Borrower will:
(a) _X_ Provide Bank within twenty (20) days of each month's end, a
company prepared financial statement (including the thirteenth
(13) month statement including all adjustments to net worth) in
accordance with requirements of the franchise(s) for which
Borrower is a dealer.
_X_ Provide Bank within sixty (60) days after Borrower's fiscal
year-end a financial statement compiled by a Certified Public
Accountant acceptable to the Bank.
__ Provide Bank within one-hundred-twenty (120) days after
Borrower's fiscal year-end a financial statement reviewed by a
Certified Public Accountant acceptable to the Bank.
___ Provide Bank within one-hundred-fifty (150) days of Borrower's
fiscal year-end audited financial statements prepared by a
Certified Public Accountant acceptable to the Bank.
In submitting such statements to Bank an authorized officer of Borrower
will certify such statements to be true and accurate, continuing compliance
with all terms and conditions contained herein and in the other Loan
Documents and that no material violation or default exists with any
material agreement.
_X_ As to Guarantors, provide the Bank a copy of each Guarantor's
personal financial statement within thirty (30) days of calendar
year-end in a manner and form acceptable to the Bank.
Additionally, each Guarantor shall provide the Bank a copy of
each Guarantor's federal income tax return and all schedules
thereto within thirty (30) days of filing each return.
(b) Not merge into or consolidate with any other person, firm,
corporation or limited liability company nor sell any substantial part of
its assets to any person, firm, corporation or limited liability company
except in the ordinary course of business;
(c) Not sell or enter into any agreement to sell or deal in new motor
vehicles manufactured by any manufacturer for whom it is not now a Retailer
or Wholesaler, unless approved by Bank in writing which will not be
unreasonably withheld;
(d) Keep all Collateral and inventory insured, by insurers acceptable
to Bank, at all times in an amount at least equal to the amount of debt to
Bank under the Line with deductible amount satisfactory to Bank, and the
insurance policy to contain loss
payable clauses to Bank as its interest may appear. Borrower will deliver
original policies or, if permitted by Bank, certificates of insurance to
Bank;
(e) Permit Bank to enter upon the property of Borrower at any time to
examine all Collateral and to examine Borrower's books in connection
therewith.
(f) At time of execution of this Floor Plan Agreement deliver to Bank
such Landlord Waiver and/or Mortgagee Waiver and Estoppel Agreements duly
executed by the appropriate parties in such form as is satisfactory to Bank
and Borrower will thereafter furnish to Bank current executed copies of the
above instruments upon written request of Bank;
(g) Not allow any material change in ownership or management nor enter
into any management agreement pursuant to which any third party assumes the
management of Borrower in anticipation of a sale of Borrower's business or
any material part of its assets without Bank's prior written approval;
(h) Operate business in compliance with all environmental protection
laws and regulations including applicable local, state, or federal law,
regulations, or rule of common law;
(i) Not allow any liens or encumbrances on any of Borrower's assets or
property without the written consent of Bank;
(j) Borrower and Guarantor shall promptly notify Bank in writing of
(i) any condition, event or act which comes to Borrower's or Guarantor's
attention that would or might materially adversely affect Borrower's or
Guarantor's financial condition or operations, the Collateral, or Bank's
rights under the Guaranty or any Loan Documents, (ii) any litigation in
excess of $25,000.00 filed by or against Borrower or Guarantor, or (iii)
any event that has occurred that would constitute an event of default under
any Loan Documents, including but not limited to any Guaranty.
(k) See Addendum "C" for additional covenants which are a part of this
Agreement for all purposes as if they were copied word for word herein.
15. EVENTS OF DEFAULT.
The following are events of default hereunder and under the other Loan
Documents: (a) the failure to pay or perform any obligation, liability,
indebtedness or covenant of any Borrower or Guarantor to Bank, or to any
affiliate of Bank, whether under this Floor Plan Agreement, Security
Agreement, Note or any other agreement or instrument now or hereafter
existing, as and when due (whether upon demand, at maturity or by
acceleration); (b) the failure to pay
or perform any other obligation, liability or indebtedness of any Borrower
or Guarantor whether to Bank or some other party, the collateral for which
constitutes an encumbrance on the collateral for this Floor Plan Agreement;
(c) a proceeding being filed or commenced against any Borrower or Guarantor
for dissolution or liquidation, or any Borrower or Guarantor voluntarily or
involuntarily terminating or dissolving or being terminated or dissolved;
(d) insolvency of, business failure of, the appointment of a custodian,
trustee, liquidator or receiver for or for any of the property of, or an
assignment for the benefit of creditors by, or the filing of a voluntary or
involuntary petition under bankruptcy, insolvency or debtor's relief law or
for any adjustment of indebtedness, composition or extension by or against
any Borrower or Guarantor; (e) any lien, encumbrance or additional security
interest being placed upon any of the Collateral which is security for this
Floor Plan Agreement; (f) acquisition at any time or from time to time of
title to the whole of or any part of the Collateral which is security for
this Floor Plan Agreement by any person, partnership, corporation or other
entity except for sales thereof in the ordinary course of business; (g)
Bank determining that any representation or warranty made by any Borrower
or Guarantor to Bank is, or was, untrue or materially misleading; (h)
failure of any Borrower or Guarantor to timely deliver such financial
statements, including tax returns, and other statements of condition or
other information as Bank shall request from time to time; (i) entry of a
judgment against any Borrower or Guarantor which Bank deems to be of a
material nature, in Bank's sole discretion; (j) the seizure or forfeiture
of, or the issuance of any writ of possession, garnishment or attachment,
or any turnover order for any property of any Borrower or Guarantor; (k)
Bank reasonably deeming itself insecure or its prospects for payment of the
debt impaired for any reason; (1) the determination by Bank that a material
adverse change has occurred in the financial condition of any Borrower or
Guarantor; (m) the failure to comply with any law regulating the operation
of Borrower's business; (n) Guarantor undertakes to terminate or revoke any
guaranty of payment of this Note or defaults in the performance of or
disputes any of his obligations as Guarantor; (o) the inability of the
Borrower or Guarantor to pay debts as they mature owing to Bank or any
other party.
16. REMEDIES. Upon the occurrence of any default hereunder or any of the other
Loan Documents, Bank shall have all of the rights and remedies of a
creditor and, of a secured party under the Uniform Commercial Code as
enacted in the State of Georgia, O.C.G.A ss.11-9 and all other applicable
law. Without limiting the generality of the foregoing, Bank may, at its
option and without notice or demand: (a) declare any liability of Borrower
under this Agreement or any of the other Loan Documents accelerated and due
and payable at once; and (b) take possession of any Collateral wherever
located, and sell, resell, assign, transfer and deliver all or any part of
said Collateral of Borrower or Guarantor at any public or private sale or
otherwise dispose of any or all of the Collateral in its then condition,
for cash or on credit or for future delivery, and in connection therewith
Bank may impose reasonable conditions upon any such sale. Bank, unless
prohibited by law the provisions of which cannot be waived, may purchase
all or any part of said Collateral to be sold, free from and in discharge
of all trusts, claims, rights of redemption and equities of the Borrower or
Guarantor whatsoever; Borrower and Guarantor acknowledge and agree that the
sale of any Collateral through any
nationally recognized broker - dealer, investment banker or any other
method common in the securities industry shall be deemed a commercially
reasonable sale under the Uniform Commercial Code or any other equivalent
statute or federal law, and expressly waive notice thereof except as
provided herein; and (c) set-off against any and all money owed by Bank in
any capacity to Borrower or Guarantor whether or not due for any
Liabilities of the Borrower to the Bank under this Agreement and the other
Loan Documents.
17. ATTORNEY FEES, COST AND EXPENSES. Borrower and/or Guarantor shall pay all
costs of collection and attorney's fees equal to reasonable and actual
attorney's fees, including reasonable attorney's fees in connection with
any suit, mediation or arbitration proceeding, out of court payment
agreement, trial, appeal, bankruptcy proceedings or otherwise, incurred or
paid by Bank in enforcing the payment of any Liability or enforcing or
preserving any right or interest of Bank hereunder, including the
collection, preservation, sale or delivery of any Collateral from time to
time pledged to Bank, and after deducting such fees, costs and expenses
from the proceeds of sale or collection, Bank may apply any residue to pay
any of the Liabilities and Guarantor shall continue to be liable for any
deficiency with interest at the rate specified in any instrument evidencing
the Liability or, at the Bank's option, equal to the highest lawful rate,
which shall remain a liability.
18. PRESERVATION OF PROPERTY. Bank shall not be bound to take any steps
necessary to preserve any rights in any of the property of Borrower and/or
Guarantor pledged to Bank to secure Borrower's and/or Guarantor's
obligations against prior parties who may be liable in connection
therewith, and Borrower and/or Guarantor hereby agree to take any such
steps. Bank, nevertheless, at any time, may (a) take any action it deems
appropriate for the care or preservation of such property or of any rights
of Borrower and/or Guarantor or Bank therein, (b) demand, ▇▇▇ for, collect
or receive any money or property at any time due, payable or receivable on
account of or in exchange for any property of Borrower and/or Guarantor,
(c) compromise and settle with any person liable on such property, or (d)
extend the time of payment or otherwise change the terms thereof as to any
party liable thereon, all without notice to, without incurring
responsibility to, and without affecting any of the obligations or
liabilities of Borrower and/or Guarantor.
19. TERMINATION. The Line may be terminated at any time by either party with or
without cause upon 30 days' notice in writing to the other. Upon the
occurrence of a default hereunder, Bank shall have the right to terminate
the Line and to mature all debt outstanding hereunder, including principal
and interest, without notice to any person. Termination of the Line
hereunder shall not affect the obligations of Borrower with respect to any
debt incurred prior to termination. All such obligations shall continue in
full force and effect until all debt under the Line is paid in full.
20. OVERLINE DEBT. In the event debt outstanding under the Line should for any
reason
exceed the amount of the Line allowed hereunder, all such debt shall be
payable on demand, but if no demand is made, no later than such time as may
be specified by Bank at the time of the approval of the temporary overline.
The overline debt shall bear interest at the rate specified for debt under
the Line, and shall be governed by all the terms and conditions of this
Agreement and the other Loan Documents and shall be secured by all
Collateral for the Line, and all items of inventory financed by the
overline debt shall secure all debt under the Line including the overline
and be governed by all terms of the Security Agreement, Floor Plan
Agreement and Note. Bank shall have no obligation to permit any overline at
any time but in its sole discretion may do so.
21. REVIEW OF LINE. Bank may, at its option, from time to time review the
credit for performance, pricing, amount of Line, and Borrower's financial
condition.
22. CHANGE IN TERMS. Bank may at its discretion amend or modify any term or
provision of this Floor Plan Agreement, Security Agreement or any other
agreements pertaining to this Agreement, with any change to be effective 15
days after mailing of notice to Borrower.
23. SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and each party's respective successors,
heirs, executors, administrators, personal representatives and assigns.
Neither this Floor Plan Agreement nor any interest in it may be assigned or
otherwise voluntarily or involuntarily transferred by Borrower without
Bank's prior written approval.
24. WAIVER. (a) Bank may consent to or waive any action or any failure to act
by Borrower with respect to any obligation of Borrower hereunder. Any
consent or waiver on the part of Bank shall be binding upon Bank only when
in writing and signed by an officer of Bank, and no failure to take action
with respect to any default shall constitute a waiver thereof. No waiver of
any default shall be a waiver of any other or future default of that or any
other nature; (b) Bank shall not be required to proceed first against
Borrower, or any other person, firm or corporation, whether primarily or
secondarily liable, or against any collateral held by it, before resorting
to Guarantor for payment, and Guarantor shall not be entitled to assert as
a defense to the enforceability of the Guaranty any defense of Borrower
with respect to any Liabilities or Obligations.
25. GOVERNING LAW. This Floor Plan Agreement shall be deemed to have been made
in the State of Georgia at the address indicated above, and shall be
governed by, and construed in accordance with, the laws of the State of
Georgia, and is performable in the State of Georgia.
26. MEDIATION, BINDING ARBITRATION. The parties will attempt in good faith to
resolve any controversy or claim arising out of or relating to this
Agreement or the other Loan Documents by participating in mediation and/or
binding arbitration. Each party agrees that each will bear its respective
expenses related to either mediation and/or arbitration. The parties
further agree if the matter has not been resolved pursuant to mediation
within thirty
(30) days of notice to mediate given by either party, the controversy shall
be settled by arbitration and shall be governed by the United States
Arbitration Act, 9 U.S.C. ss.1-16, (or if not applicable, the applicable
state law), and judgment upon the award rendered by the Arbitrator may be
entered by any court having jurisdiction thereof. The parties recognize
that Bank could be prejudiced by not being able to foreclose on property
pledged as Collateral to Bank. The parties agree that nothing in this
Agreement shall be deemed to (i) limit the applicability of any otherwise
applicable statutes of limitation or repose and any waivers contained in
this Agreement; or (ii) be a waiver by the Bank of the protection afforded
to it by 12 U.S.C. Sec. 91 or any substantially equivalent state law; or
(iii) limit the right of the Bank hereto (a) to exercise self help remedies
such as (but not limited to) setoff, or (b) to foreclose against any real
or personal property collateral, or (c) to obtain from a court provisional
or ancillary remedies such as (but not limited to) injunctive relief or the
appointment of a receiver. The Bank may exercise such self help rights,
foreclose upon such property, or obtain such provisional or ancillary
remedies before, during or after the pendency of any arbitration proceeding
brought pursuant to this agreement. At Bank's option, foreclosure under a
deed of trust or mortgage may be accomplished by any of the following: the
exercise of a power of sale under the deed of trust or mortgage, or by
judicial sale under the deed of trust or mortgage, or by judicial
foreclosure. Neither this exercise of self help remedies nor the
institution or maintenance of an action for foreclosure or provisional or
ancillary remedies shall constitute a waiver of the right of any party,
including the claimant in any such action, to arbitrate the merits of the
controversy or claim occasioning resort to such remedies.
27. ADDITIONAL TERMS. (a) As used herein, the singular number shall include the
plural (e.g. "Note" means Note or Notes); or (b) In the event that there
are any written terms that may differ between this Floor Plan Agreement and
any other agreements, documents, or negotiations in existence prior to the
execution of this Floor Plan Agreement, Bank and Borrower agree that the
terms of this Floor Plan Agreement shall control and be the final
agreement.
28. MERGER. The terms of any commitment letter issued by Bank to Borrower for
this Line are incorporated herein by reference, except to the extent that
such terms are inconsistent with the terms of this Floor Plan Agreement,
Security Agreement or Note. Any such inconsistent terms are of no effect.
This Floor Plan Agreement supersedes any Floor Plan Agreements heretofore
executed by and between Bank and Borrower, and all outstanding Floor Plan
Agreement indebtedness is hereafter subject to all of the terms and
provisions of this Floor Plan Agreement, and the outstanding principal
balance of all such Floor Plan indebtedness is added to the principal
balance of this Floor Plan Agreement.
29. NOTICES. Any notice or other communication required or permitted hereunder
or under any Note or Security Agreement shall be in writing and shall be
delivered personally, sent by facsimile transmission or by first-class,
certified, registered or express mail, or by courier, with postage and
other charges prepaid. Any such notice shall be deemed given when so
delivered personally, by courier or by facsimile transmission, or, if
mailed, five (5) days after the date of deposit in the United States mail,
as follows:
If to Borrower, to:
European Motors, LLC
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇
Facsimile #__________________________________
If Bank, to:
NationsBank, N.A. (South)
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇ ▇▇▇▇▇▇ or ▇▇▇▇ ▇▇▇▇▇▇▇▇
Either Bank or Borrower may, by notice given in accordance with this
provision, designate another address or person for receipt of notices
hereunder.
30. FLOOR PLAN COLLATERAL AND/OR INVENTORY INSPECTION. Floor Plan inventory
inspections will be conducted by Bank from time to time at the sole
discretion of Bank. Borrower agrees to pay in full any item or unit of
Collateral that is not located at Borrower's premises or accounted for by
Borrower to Bank. Borrower shall make payment to Bank immediately upon
notice of demand being given to Borrower pursuant to paragraph 29 (NOTICES)
of the Floor Plan Agreement.
31. FINAL AGREEMENT. THIS FLOOR PLAN AGREEMENT, THE FLOOR PLAN PROMISSORY NOTE,
THE SECURITY AGREEMENT AND ANY OTHER AGREEMENTS EXECUTED IN CONJUNCTION
WITH THIS FLOOR PLAN REVOLVING LINE OF CREDIT REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
IN WITNESS WHEREOF, the undersigned has caused this Floor Plan Agreement to
be executed under seal on the 6th day of May, 1996.
European Motors, LLC (Seal)
NationsBank, N.A. (South) Borrower
Bank
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------- -------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇
Assistant Vice President Chief Manager
(Name and Title) (Name and Title)
ADDENDUM "A"
This Addendum "A" to the Floor Plan Agreement shall be and is incorporated by
reference for all purposes as part of the Floor Plan Agreement dated May 6. 1996
between Bank and Borrower.
Curtailments. Curtailment payments based upon the original amount advanced with
respect to specific items of Collateral shall be paid on the following types of
units of Collateral based upon either a dollar or percentage amount as billed to
Borrower and payment is due when billed. The Curtailment payment is to be
applied against the original amount advanced for a unit of Collateral. The
Curtailment payment based upon either a dollar or percentage amount is
calculated on the original amount advanced for the unit and not the outstanding
unpaid balance from time to time.
Unit Type Curtailment Amount Curtailment Date Final Payoff Date
New 10% of original Due 90 days 15 months from
amount financed. prior to maturity. date financed.
Used and In full at the end
Program of the 7th month.
Executed under seal this 6th day of May, 1996.
Borrower: European Motors, LLC (Seal)
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇
Chief Manager
(Name and Title)
Approved: NationsBank, N.A. (South)
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Assistant Vice President
(Name and Title)
ADDENDUM "B"
This Addendum "B" to the Floor Plan Agreement shall be and is incorporated by
reference for all purposes as part of the Floor Plan Agreement dated May 6. 1996
between Bank and Borrower.
Floor Plan Sublimits. The following sublimits represent the amount of
outstandings permitted at any one time in connection with the particular type of
Collateral being financed; notwithstanding, the Bank, in it's sole discretion,
may advance from time to time amounts in excess of the sublimit amounts below:
Unit Type Sublimit Amount
--------- ---------------
New Vehicles $5,500,000.00
Used Vehicles $ 500,000.00
Executed under seal on the 6th day of May, 1996.
Borrower: European Motors, LLC (Seal)
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇
Chief Manager
(Name and Title)
Approved: NationsBank, N.A. (South)
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Assistant Vice President
(Name and Title)
ADDENDUM "C"
This Addendum "C" to the Floor Plan Agreement shall be and is incorporated by
reference for all purposes as part of the Floor Plan Agreement dated May 6, 1996
between Bank and Borrower.
As used herein, the following defined terms shall have the following meanings:
Working Capital - Current assets minus current liabilities.
Current Assets - Current assets (inclusive of LIFO reserve for new and used
vehicles) less amounts due from officers, stockholders, insiders,
affiliates and employees included as current assets, all computed in
accordance with generally accepted accounting principles.
Current Liabilities - Current liabilities less amounts included as current
liabilities due to officers, stockholders, insiders, affiliates and
employees, which have been expressly subordinated in payment to the Bank,
all computed in accordance with generally accepted accounting principles.
Inventory Trust Position - The sum of cash, contracts in transit, vehicle
accounts receivable (excluding any finance contract receivable), new and
used vehicle inventory (inclusive of LIFO reserves for new and used
vehicles) less new and used vehicle floor plan debt.
Tangible Net Worth - Net worth less intangible assets, less leasehold
improvements, less amounts due from officers, stockholders, insiders,
affiliates and employees, plus 100% times the LIFO reserve for new and used
vehicles, plus amounts payable to officers, stockholders, insiders,
affiliates and employees that are expressly subordinated in payment to the
Bank all computed in accordance with generally accepted accounting
principles.
Total Liabilities - Total liabilities less amounts payable to officers,
stockholders, insiders, affiliates and employees that are expressly
subordinated in payment to the Bank, all computed in accordance with
generally accepted accounting principles.
Additional Covenants. While the Line is effect, and thereafter while Borrower is
indebted to Bank, Borrower will: (▇▇▇▇ ▇▇▇▇▇ for applicable covenant)
_X_(1) Maintain Working Capital of not less than $1,000,000.00 based on annual
CPA prepared Compiled Financial Statements.
___(2) Maintain a ratio of Current Assets to Current Liabilities of not less
than______ to 1.0 at all times.
_X_(3) Maintain Tangible Net Worth of not less than $723,775.00 at all times.
1
___(4) Not permit the ratio of Total Liabilities to Tangible Net Worth to exceed
______ to 1.0 based on annual CPA prepared Compiled Financial Statements.
___(5) Maintain a minimum Inventory Trust Position of not less than $__________
at all times.
___(6) Provide to Bank within _ days of each month end a monthly Certificate
of Compliance in the form attached hereto as "Exhibit A-1", signed by a
duly authorized representative of Borrower or Borrower.
_X_(7) Other: (If additional space is needed, attach additional pages to this
Addendum)
Maintain a Cash Flow Coverage Ratio of not less than 1.25 to 1.0 based on
annual CPA prepared Compiled Financial Statements.
Cash Flow Coverage Ratio is defined as follows: The aggregate of net income
after taxes plus depreciation and amortization plus the annual LIFO
Adjustment and other non-cash expenses, less dividends and/or profits taken
out of the Borrower divided by the aggregate of the current portion of long
term debt and capital lease obligations.
Executed under seal on the 6th day of May, 1996.
Borrower: European Motors, LLC (Seal)
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇
Chief Manager
(Name and Title)
Approved: NationsBank, N.A. (South)
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Assistant Vice President
(Name and Title)
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