FIRST
CHARTER
NATIONAL
BANK
Account Number: 543736
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MODIFICATION AND EXTENSION AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF: Cabarrus Effective Date: May 30 , 19 98
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This Modification and Extension Agreement is made and entered into, this 20 day of May , 19 98
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by and between First Charter National Bank, a national banking corporation (hereinafter referred to as "BANK");
HLM Design of Iowa, Inc. (hereinafter referred to as maker(s) or
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co-maker(s) on the Note described below individually and collectively as "BORROWER");
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the trustee or successor trustee under the Deed of Trust described below (hereinafter referred to as
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"TRUSTEE"); and Xxxxxx X. Xxxxxx, Xxxxxxx X. Xxxxxxx, Xxxxxx X. Xxxxxxx the guarantor(s), endorser(s)
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or other obligor(s) (if any) on the Note described below, or the owner(s) other than the BORROWER (if any) of any property
pledged to secure performance of BORROWER'S obligation to BANK (hereinafter
referred to individually and collectively as "THIRD PARTY").
WITNESSETH:
WHEREAS, BORROWER is indebted to BANK in the original principal sum of:
Five hundred thousand and no/100 - - - - - - - - - - - - - - - - - - - - - ($500,000.00 )
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which Note has a current principal balance of:
Four hundred ninety nine thousand one hundred eleven and 10/100 - - - - - - ($499,111.10 )
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as evidenced by a:
|_| Note dated , made payable to
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|X| Note and Security Agreement dated December 10, 1996 , which Note is made payable
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to First Charter National Bank
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|_| Note and Deed of Trust dated , which Note is made payable
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to
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and which Deed of Trust is recorded in Book , Page , in the
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County Registry and relates to the real property described therein;
said Note, Note and Security Agreement, or Note and Deed of Trust. including any renewals, extensions, or modifications
thereof, being hereinafter referred to as "CONTRACT" and said CONTRACT being incorporated and made a part hereof by
reference; and
WHEREAS, BORROWER and BANK mutually desire to modify and amend the
provisions of the CONTRACT in the manner hereinafter set forth, it being
specifically understood that, except as herein modified and amended, the terms
and provisions of the CONTRACT shall remain unchanged and continue in full force
as therein written; and
WHEREAS, THIRD PARTY, if different from BORROWER, and TRUSTEE have
agreed to the terms of this modification;
NOW, THEREFORE, by mutual agreement of the parties and in mutual
consideration of the premises and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereto agree that said
CONTRACT by modified and amended to provide as follows:
INTEREST RATE
|_| Interest will be paid at the rate of % per annum. This rate will be
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effective the date this CONTRACT is executed.
|_| Interest will be paid at a variable rate of interest known as the
"Contract Rate." This rate will be effective the date this CONTRACT is
executed. BORROWER acknowledges that the Contract Rate may increase or
decrease based on changes in the Prime Rate published by BANK.
The Contract Rate will be the BANK'S Prime Rate plus _____ Percentage
Points (the "Margin"). The initial Contract Rate is _____%. The
Minimum Contract Rate shall be _____%, and the Maximum Contract Rate
shall be ______%, provided that at no time shall the Contract Rate
exceed the maximum interest rate allowed by law to be charged by BANK.
Increases or decreases in the Contract Rate of interest will: |_|
increase or decrease the amount of each payment due thereafter; |_|
increase or decrease the final payment due. The Contract Rate will |_|
be the Prime Rate in effect on the last day of the preceding month,
plus the Margin and changes in the Contract Rate during a month will
take effect as of the first business day of the following month; OR
|_| change daily assuming there is a change in the Prime Rate; OR |_|
as often ___________. The BANK'S Prime Rate is not intended or
represented to be the lowest or most favorable rate of interest
charged or offered by the BANK to its customers.
|_| Other:
PRINCIPAL AND INTEREST PAYMENT TERMS:
|_| Principal and Interest is payable in full at maturity on , .
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|_| Payable in consecutive installments of: |_| principal, or |_| principal and interest, commencing on
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, 19 ; and continuing on the same day of each calendar
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period thereafter, in equal payments of $ , with one final payment
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of all remaining principal principal and interest due on , .
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|_| Interest is payable , commencing on , 19 , and continuing on
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the same day of each calendar period thereafter, with one final payment of all remaining principal and interest due on
, .
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|X| Other: The maturity date on this loan shall be extended to July 30, 1998
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In the event periodic accruals of interest shall exceed any periodic fixed
payment amount described above, the fixed payment amount shall be immediately
increased, or additional supplemental interest payments required on the same
periodic basis as specified above (increased fixed payments or supplemental
payments to be determined in the BANK'S sole discretion), in such amounts and at
such times as shall be necessary to pay all accruals of interest for the period
and all accruals of unpaid interest from previous periods. Such adjustments to
the fixed payment amount or supplemental payments shall remain in effect for so
long as the interest accruals shall exceed the original fixed payment amount and
shall be further adjusted upward or downward to reflect changes in the variable
interest rate. In no event shall the fixed payment amount be reduced below the
original fixed payment amount specified above.
COLLATERAL:
Unless otherwise provided herein, it is expressly understood and agreed by the
parties hereto that any and all collateral given as security to insure faithful
performance by BORROWER and any THIRD PARTY of any and all obligations to BANK,
however created, whether now existing or hereafter arising, shall remain as
security for the previously described CONTRACT as modified hereby.
It is expressly understood and agreed by and between the parties hereto that any
security agreement, deed of trust, chattel mortgage, trust receipt, assignment,
contract or other writing granting BANK security for performance of any
obligation to BANK is, to the extent inconsistent herewith, modified and changed
to be consistent with the terms of this Modification and Extension Agreement.
|_| If marked, the aforesaid CONTRACT, as herein modified, and the
performance of any loan agreement between the parties shall be
additionally secured by collateral hereinafter described, and a new
security instrument shall be executed by the BORROWER and/or THIRD
PARTY:
Date: Type of Agreement: From:
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Collateral:
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Date: Type of Agreement: From:
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Collateral:
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|_| If marked, the collateral hereinafter described shall be and hereby is deleted as security for payment of the aforesaid
CONTRACT:
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However, it is understood and agreed that BANK shall not be required or
obligated to take any further steps to release said collateral from any
lien or security unless BANK determines, in its sole discretion, that it
may do so without consequence to its secured position and relative priority
in other collateral, and unless BORROWER bears the reasonable cost of such
action.
OTHER
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If the CONTRACT being modified by this Agreement is signed by more than one
person or entity, the modified CONTRACT shall be the joint and several
obligation of all signers, and each provision of the CONTRACT as modified shall
apply to each and all of the signers and to the property and liability of each
and all of them.
This Modification and Extension Agreement shall bind and inure to the benefit of
the successors in interest hereto, and it is expressly understood and agreed
that this Agreement is a modification only and not a novation. The original
obligation of the BORROWER, as evidenced by the above-described CONTRACT is not
extinguished hereby. It is also understood and agreed that, except for the
above-indicated modifications said CONTRACT, and/or any other loan documents or
agreements and all singular terms and conditions thereof, shall be and remain in
force and effect and that this Modification and Extension Agreement shall not
release or affect the liability of any co-makers, guarantors, obligors, or
endorsers of said CONTRACT. BORROWER specifically consents to the terms of this
Modification and Extension Agreement and waives any objection thereto, and
further affirms any obligation to BANK previously created. BANK expressly
reserves all rights as to any party with right of recourse on the aforesaid
CONTRACT.
IN WITNESS WHEREOF, this instrument has been executed by the parties
hereto and delivered on the day and year first above written.
Attest: First Charter National Bank
By: /s/ Illegible Signature
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ASSlSTANT SECRETARY VICE PRESIDENT
(CORPORATE SEAL) BORROWER:
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BORROWER - INDIVIDUAL
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BORROWER - INDIVIDUAL
HLM Design of Iowa, Inc. (Seal)
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NAME OF CORPORATION
Attest:
/s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxx
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TITLE
ASSlSTANT SECRETARY
(CORPORATE SEAL) By:
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TITLE
TRUSTEE:
.
(Seal)
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THIRD PARTY (Guarantor, Endorser, Etc.):
(Seal)
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Xxxxxxx X. Xxxxxxx
/s/ Xxxxxx X. Xxxxxx (Seal)
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Xxxxxx X. Xxxxxx
/s/ Xxxxxx X. Xxxxxxx (Seal)
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Xxxxxx X. Xxxxxxx
(Seal)
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