GUARANTY
Springdale, Arkansas
December 29, 2000
For good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and to induce THE FIRST NATIONAL BANK OF
SPRINGDALE, 100 Xxxx Xxxx, Box 249, Springdale, Arkansas 72765 (herein, with its
participants, successors and assigns, called "Lender"), at its option, at any
time or from time to time to make loans or extend other accommodations to or for
the account of XXXXXXX DIRECTIONAL BORING, INC. (herein called the "Borrower")
or to engage in any other transactions with Borrower, the Undersigned hereby
absolutely and unconditionally guarantees to Lender the full and prompt payment
when due, whether at maturity or earlier by reason of acceleration or otherwise,
of the debts, liabilities and obligations described as follows:
A. If this ____ is checked, the Undersigned guarantees to Lender the
payment and performance of the debt, liability or obligation of
Borrower to Lender evidenced by or arising out of the following:
NOTE DATED 12/29/00 IN THE AMOUNT OF $110,141.66 and any
extensions, renewals or replacements thereof (hereinafter referred
to as the "Indebtedness").
B. If this ____ is checked, the Undersigned guarantees to Lender the
payment and performance of each and every debt, liability and
obligation of every type and description which Borrower may now or
at any time hereafter owe to Lender (whether such debt, liability
or obligation now exists or is hereafter created or incurred, and
whether it I or may be direct or indirect, due or to become due,
absolute or contingent, primary or secondary, liquidated or
unliquidated, or joint, several or joint and several; all such
debts, liabilities and obligations being hereinafter collectively
referred to as the "indebtedness"). Without limitation, this
guaranty includes the following described debt(s):
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The term "Indebtedness" as used in this guaranty shall not include any
obligations as used in this guaranty shall not include any obligations entered
into between Borrower and Lender after the date hereof (including any
extensions, renewals or replacements of such obligations0 for which Borrower
meets the Lender's standard of creditworthiness based on Borrower's own assets
and income without the addition of a guaranty, or for which a guaranty is
required but Borrower chooses someone other than the joint Undersigned to
guaranty the obligation.
The Undersigned further acknowledges and agrees with Xxxxxx that:
1. No act or thing need occur to establish the liability of the
Undersigned hereunder, and no act or thing, except full payment and discharge of
all indebtedness, shall in any way exonerate the Undersigned or modify, reduce,
limit or release the liability of the Undersigned hereunder.
2. This is an absolute, unconditional and continuing guaranty of
payment of the indebtedness and shall continue to be in force and be binding
upon the Undersigned, whether or not all Indebtedness is paid in full, until
this guaranty is revoked by written notice actually received by the Lender, and
such revocation shall not be effective as __ Indebtedness existing or committed
for at the time of actual receipt of such notice by the Lender, or as to any
renewals, extensions and refinancings thereof. If there be more than one
Undersigned, such revocation shall be effective only as to the one so revoking.
The death or incompetence of the Undersigned shall not revoke this guaranty,
except upon actual receipt of written notice thereof by Xxxxxx and then only as
to the decadent or the incompetent and only prospectively, as to future
transactions, as herein set forth.
3. If the Undersigned shall be dissolved, shall die, or shall be or
become insolvent (however defined) or revoke this guaranty, then the Lender
shall have the right declare immediately due and payable, and the Undersigned
will forthwith pay to the Lender, the full amount of all Indebtedness, whether
due and payable or unmatured. If the Undersigned voluntarily commences or there
is commenced involuntarily against the Undersigned a case under the United
States Bankruptcy Code, the full amount of all Indebtedness, whether due and
payable or unmatured, shall be immediately due and payable without demand or
notice thereof.
4. The liability of the Undersigned hereunder shall be limited to a
principal amount of $110,141.66 (if unlimited or if no amount is stated, the
Undersigned shall be liable for all Indebtedness, without any limitation as to
amount), plus accrued interest thereon and all attorneys' fees, collection costs
and enforcement expenses referable thereto. Indebtedness may be created and
continued in any amount, whether or not in excess of such principal amount,
without affecting or impairing the liability of the Undersigned hereunder. The
Lender may apply any sums received by or available to Lender on account of the
Indebtedness from Borrower or any other person (except the Undersigned), from
their properties, out of any collateral security or from any other source to
payment of the excess. Such application of receipts shall not reduce, affect or
impair the liability of the Undersigned hereunder. If the liability of the
Undersigned is limited to a stated amount pursuant to this paragraph 4, any
payment made by the Undersigned under this guaranty shall be effective to reduce
or discharge such liability only if accompanied by a written transmittal
document, received by the Lender, advising the Lender that such payment is made
under this guaranty for such purpose.
5. The Undersigned will pay or reimburse Lender for all costs and
expenses (including reasonable attorneys' fees and legal expenses) incurred by
Xxxxxx in connection with the protection, defense and enforcement of this
guaranty in any litigation or bankruptcy or insolvency proceedings.
This guaranty includes the additional provisions on page 2, all of
which are made a part hereof.
This guaranty is ___ unsecured; ___ secured by a mortgage or security
agreement dated ________; ___ secured by
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IN WITNESS WHEREOF, this guaranty has been duly executed by the
Undersigned the day and year first above written.
/s/ Xxxx X. Xxxxxxxx
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XXXX X. XXXXXXXX
(SS ####-##-####)
51064
