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AMCOM CORPORATION FIDELITY BANK Loan Number 2973
0000 XXXX XXXXX 0000 XXXXXXXX XXX. Date September 10, 1996
EDEN PRAIRIE, MN 55346 EDINA, MN 55435 Maturity Date January 1, 1997
Loan Amount $2,500,000.00
XXXXXXXX'S NAME AND ADDRESS XXXXXX'S NAME AND ADDRESS Renewal of 2973
"i" "me" and "my" means each borrower "You" and "your" means the lender,
above, together and separately. its successors and assigns
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I promise to pay you, at your address listed above, the PRINCIPAL sum of TWO
MILLION FIVE HUNDRED THOUSAND AND NO/100 Dollars ($2,500,000.00).
[ ] Single Advance: I will receive all of the loan amount on _________________.
There will be no additional advances under this note.
[X] Multiple Advance: The loan amount shown above is the maximum amount I can
borrow under this note. On September 10, 1996
I will receive $_____ and future principal advances are permitted.
Conditions: The conditions for future advances are
[X] Open End Credit: You and I agree that I may borrow up to the
maximum amount more than one time. All other conditions of this note apply to
this feature. This feature expires on January 1, 1997.
[ ] Closed End Credit: You and I agree that I may borrow up to the
maximum only one time (and subject to all other conditions).
INTEREST: I agree to pay interest on the outstanding principal balance from
September 10, 1996 at the rate of 8.750% per year until FIRST CHANGE DATE.
[X] Variable Rate: This rate may then change as stated below.
[X] Index Rate: The future rate will be 0.500% over the following index
rate: PRIME RATE ESTABLISHED BY FIRST BANK NATIONAL ASSOCIATION
[ ] No Index: The future rate will not be subject to any internal or external
index. It will be entirely in your control.
[X] Frequency and Timing: The rate on this note may change as often as daily.
A change in the interest will take effect on the same day.
[X] Limitations: During the term of this loan, the applicable annual interest
rate will not be more than ____% or less than 7.000%. The rate may not change
more than ____% each _____________.
Effect of Variable Rate: A change in the interest rate will have the following
effect on the payments:
[X] The amount of each scheduled payment will change. [X] The amount of the
final payment will change.
[ ] __________________________________________________________________________.
ACCRUAL METHOD: You will calculate interest on an actual/360 basis.
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note
owing after maturity, and until paid in full, as stated below:
[X] on the same fixed or variable rate basis in effect before maturity
(as indicated above).
[ ] at a rate equal to ______________________________________________.
[ ] LATE CHARGE: If I make a payment more than ___ days after it is due, I agree
to pay a late charge of ______________________________________________________.
[ ] ADDITIONAL CHARGES: In addition to interest, I agree to pay the following
charges which [ ] are [ ] are not included in the principal amount above:
______________________________.
[ ] Authority: The interest rate and other charges for this loan are authorized
by ________________________________________________________.
PAYMENTS: I agree to pay this note as follows:
[X] Interest: I agree to pay accrued interest on demand, but if no demand is
made then on the 1st day of each month beginning October 1, 1996.
[X] Principal: I agree to pay the principal on demand, but if no demand is made
then on January 1, 1997.
[ ] Installments: I agree to pay this note in _____ payments. A payment of
$______________________ will be due ________________________. The final payment
of the entire unpaid balance of principal and interest will be due
_________________________________________________.
ADDITIONAL TERMS:
THIS NOTE IS SECURED BY ACCOUNTS RECEIVABLE, INVENTORY, EQUIPMENT AND GENERAL
INTANGIBLES NOW OWNED OR HEREAFTER ACQUIRED. THIS NOTE IS GUARANTEED.
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[ ] SECURITY: This note is separately secured by (describe PURPOSE: The purpose of this loan is business: WORKING
separate document by type and date): CAPITAL RENEWAL ______________________.
SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE
(INCLUDING THOSE ON PAGE 2). I have received a copy on
today's date.
(This section is for your internal use. Failure to list
a separate security document does not mean the agreement
will not secure this note).
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Signature for Lender AMCOM CORPORATION
/s/ XXXXXX XXXXXXXXX By: /s/ DEL XXXXXXX
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XXXXXX XXXXXXXXX DEL XXXXXXX, PRESIDENT
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