DESCRIPTION - Revolving Line of Credit Note (Working Capital) between
Xxxxx Fargo Bank and Auto-Graphics, Inc. dated May 12, 1997.
XXXXX FARGO BANK
REVOLVING LINE OF CREDIT NOTE
$1,250,000.00
El Monte, California
May 12,1997
FOR VALUE RECEIVED. The undersigned AUTO-GRAPHICS, INC.
("Borrower") promises to pay to the order of XXXXX FARGO BANK, NATIONAL
ASSOCIATION ("Bank") at its office at Flair Industrial Park RCBO, 0000
Xxxxx Xxxxx Xxxxx 000, Xx Xxxxx, XX 00000, or at such other place as the
holder hereof may designate, in lawful money of the United States of
America and in immediately available funds. The principal sum of
$3,000,000.00, or so much thereof as may be advanced and be outstanding,
with interest thereon, to be computed on each advance from the date of its
disbursement as set forth herein.
INTEREST:
(a) Interest. The outstanding principal balance of this Note shall bear
interest (computed on the basis of a 360-day year, actual days elapsed) at
a rate per annum equal to the Prime Rate in effect from time to time. The
"Prime Rate" is a base rate that Bank from time to time establishes and
which serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto. Each change in the
rate of interest hereunder shall become effective on the date each Prime
Rate change is announced within Bank.
(b) Payment of Interest. Interest accrued on this Note shall be payable
on the last day of each month, commencing June 30, 1997.
(c) Default Interest. From and after the maturity date of this Note, or
such earlier date as all principal owing, hereunder becomes due and
payable by acceleration or otherwise. The outstanding principal balance of
this Note shall bear interest until paid in full at an increased rate per
annum (computed on the basis of a 360-day year. actual days elapsed) equal
to 4% above the rate of interest from time to time applicable to this
Note.
BORROWING AND REPAYMENT:
(a) Borrowing and Repayment. Borrower may from time to time during the
term of this Note borrow, partially or wholly repay its outstanding
borrowings, and re-borrow, subject to all of the limitations, terms and
conditions of this Note and of the Credit Agreement between Borrower and
Bank defined below; provided however, that the total outstanding
borrowings under this Note shall not at any time exceed the principal
amount stated above. The unpaid principal balance of this obligation at
any time shall be the total amounts advanced hereunder by the holder
hereof less the amount of principal payments made hereon by or for any
Borrower, which balance may be endorsed hereon from time to time by the
holder. The Outstanding principal balance of this Note shall be due and
payable in full on June 1, 1999.
(b) Advances. Advances hereunder, to the total amount of the principal
sum available hereunder, may be made by the holder at the oral or written
request of (i) XXXXXX X. XXXX or XXXXXX X. XXXXXXX or XXXXXXX X. XXXXX,
any one acting alone, who are authorized to request advances and direct
the disposition of any advances until written notice of the revocation of
such authority is received by the holder at the office designated above,
or (ii) any person, with respect to advances deposited to the credit of
any account of any Borrower with the holder, which advances, when so
deposited, shall be conclusively presumed to have been made to or for the
benefit of each Borrower regardless of the fact that persons other than
those authorized to request advances may have authority to draw against
such account. The holder shall have no obligation to determine whether
any person requesting an advance is or has been authorized by any
Borrower.
(c) Application of Payments. Each payment made on this Note shall be
credited first, to any interest then due and second, to the outstanding
principal balance hereof.
EVENTS OF DEFAULT:
This Note is made pursuant to and is subject to the terms and conditions
of that certain Credit Agreement between Borrower and Bank dated as of May
12, 1997, as amended from time to time (the "Credit Agreement"). Any
default in the payment or performance of any obligation under this Note,
or any defined event of default under the Credit Agreement, shall
constitute an "Event of
Default" under this Note.
MISCELLANEOUS:
(a) Remedies. Upon the occurrence of any Event of Default as defined in
the Credit Agreement. The holder of this Note, at the holder's option,
may declare all sums of principal and interest outstanding hereunder to be
immediately due and payable without presentment. Demand, notice of
nonperformance, notice of protest, protest or notice of dishonor, all of
which are expressly waived by each Borrower, and the obligation, it any,
of the holder to extend any further credit hereunder shall immediately
cease and terminate. Each Borrower shall pay to the holder immediately
upon demand the full amount of all payments, advances, charges, costs and
expenses, including reasonable attorneys' fees (to include outside counsel
fees and all allocated costs of the holder's in-house counsel), expended
or incurred by the holder in connection with the enforcement of the
holder's rights and/or the collection of any amounts which become due to
the holder under this Note, and the prosecution or defense of any action
in any way related to this Note, including without limitation, any action
for declaratory relief, whether incurred at the trial or appellate level,
in an arbitration proceeding or otherwise, and including any of the
foregoing incurred in connection with any bankruptcy proceeding (including
without limitation, any adversary proceeding, contested matter or motion
brought by Bank or any other person) relating to any Borrower or any other
person or entity.
(b) Obligations Joint and Several. Should more than one person or entity
sign this Note as a Borrower, the obligations of each such Borrower shall
be joint and several.
(c) Governing Law. This Note shall be governed by and constructed in
accordance with the laws of the state of California.
IN WITNESS WHEREOF. The undersigned has executed this Note as of the date
first written above.
AUTO-GRAPHICS, INC.
By: Ss/Xxxxxx X. Xxxx
Title: President
