COMMERCIAL SECURITY AGREEMENTCommercial Security Agreement • April 15th, 2010 • Paneltech International Holdings, Inc. • Converted paper & paperboard prods (no contaners/boxes) • Washington
Principal $1,500,000.00 Loan Date 01-19-2001 Maturity 02-28-2010 Loan No 100012004 Call / Coll Account Officer Initials References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "***" has been omitted due to text length limitations.
COMMERCIAL GUARANTYCommercial Guaranty • April 15th, 2010 • Paneltech International Holdings, Inc. • Converted paper & paperboard prods (no contaners/boxes) • Washington
CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantor absolutely and unconditionally guarantees full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all Borrower's obligations under the Note and the Related Documents. This is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to pay the Indebtedness or against any collateral securing the Indebtedness, this Guaranty or any other guaranty of the Indebtedness. Guarantor will make any payments to Lender or its order, on demand, in legal tender of the United States of America, in same—day funds, without set—off or deduction or counterclaim, and will otherwise perform Borrower's obligations under the Note and Related Documents. Under this Guaranty, Guarantor's liability is unlimited and
CHANGE IN TERMS AGREEMENTChange in Terms Agreement • April 15th, 2010 • Paneltech International Holdings, Inc. • Converted paper & paperboard prods (no contaners/boxes) • Washington
CHANGE IN TERMS AGREEMENTChange in Terms Agreement • April 15th, 2010 • Paneltech International Holdings, Inc. • Converted paper & paperboard prods (no contaners/boxes)
DESCRIPTION OF EXISTING INDEBTEDNESS. Revolving Line of Credit in the original amount of $500,000.00 as evidenced by that certain Promissory Note and Related Documents dated January 19, 2001; as amended and increased by Change in Terms and currently maturing September 30, 2009 and in the amount of $1,700,000.
December 17,2009Default and Forbearance Agreement • April 15th, 2010 • Paneltech International Holdings, Inc. • Converted paper & paperboard prods (no contaners/boxes)
By letter dated October 22. 2009. ShoreBank Pacific ("Bank") notified Paneltech International LLC ("Borrower"), that it was in default under the Business Loan Agreement ("Loan Agreement") dated January 26, 2001, as amended, because it had violated certain of the Affirmative Covenants contained in that agreement, and that, as a result, it was also in default under the Promissory Note ("Note") of the same date. As of this date, Bank is also notifying Borrower that it was in default under the same Business Loan Agreement for ihe following covenant violations, as measured by financial statements as of October 31,2009 provided to Bank from the Borrower:
