EXHIBIT 10.1
LOAN AGREEMENT
THIS AGREEMENT effective as of the 15th day of September, 2000, by and
between XXXXXX CORPORATION, a Florida corporation (the "Borrower") and OHIO
SAVINGS BANK, a federal savings bank with its principal office in Cleveland,
Ohio (the "Bank").
RECITALS:
The Borrower has requested Bank to make available to Borrower a loan in
the amount of $14,500,000.00 and the Bank is willing to make such loan available
to the Borrower on the terms and conditions hereinafter set forth and secured as
provided in this Agreement.
NOW, THEREFORE, the Borrower and the Bank agree as follows:
ARTICLE 1
DEFINED TERMS; GENERAL MATTERS
1.1 Defined Terms. As used in this Agreement, the following terms
shall have the following meanings:
Affiliate - any director or officer of Borrower or any Person who,
directly, indirectly or beneficially, owns 5% or more of the capital stock of
Borrower or any member of the immediate family of any such officer, director or
stockholder, or any corporation or other entity which is controlled by,
controls, or is under common control with the Borrower.
Agreement - this Loan Agreement.
Applicable Laws - all laws, rules and regulations applicable to the
Person, conduct, transaction, covenant or Loan Document in question, including,
but not limited to, all applicable common law and equitable principles; all
provisions of all applicable state and federal constitutions, statutes, rules,
regulations and order of governmental bodies; and all orders, judgements and
decrees of all courts and arbitrators.
Bank - Ohio Savings Bank, a federal savings bank.
Base Rate - One half percent (.50%) per annum over the Prime Rate,
adjusted on the day of each increase or decrease in the Prime Rate.
Borrower - Xxxxxx Corporation, a Florida corporation.
Borrower's Report - the certificate or report of Borrower referred to
in Section 2.1(c) of this Agreement.
Business Day - a day, other than Saturday, Sunday, or days on which
national banks located in Boca Raton, Florida are authorized by law to close.
Capital Expenditures - expenditures made or liabilities incurred for
the acquisition of any fixed assets or improvements, replacements, substitutions
or additions thereto which have a useful life of more than one year, including
the direct or indirect acquisition of such assets by way of increased product or
service charges, offset items or otherwise and the principal portion of payments
with respect to Capitalized Lease Obligations.
Capitalized Lease Obligations - any Debt represented by obligations
under a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP, and the amount of such Debt shall be the
capitalized amount of such obligations determined in accordance with GAAP.
Closing Date - the date of this Agreement. The Closing Date is not
necessarily the date of initial funding of the Loan and the execution and
delivery of this Agreement and acceptance hereof shall not be deemed waiver by
Bank of any of the conditions to lending set forth in Article III hereof.
Collateral - all of Borrower's right, title, and interest in and to
100% of the common stock of Issuer now owned or hereafter acquired upon which a
Lien has been or is purported or intended to have been granted to the Bank under
any of the Loan Documents.
Debt - the sum of (i) indebtedness for borrowed money or for the
deferred purchase price of property or services, (ii) Capitalized Lease
Obligations, (iii) all other items which in accordance with GAAP would be
included in determining total liabilities as shown on a balance sheet of a
Person as at the date as of which Debt is to be determined.
Default Rate - the rate of interest at which the Obligations are to
bear interest after default by Borrower or the occurrence of an Event of
Default, which rate shall equal five percent (5%) in excess of the Base Rate,
calculated daily and computed on the actual days elapsed over a year of 360 days
(unless reference to a 365 or a 366-day year is necessary in order not to exceed
the highest rate permitted by Applicable Law), said rate to change as and when
the Base Rate changes.
Environmental Regulations - all federal, state and local laws, rules,
regulations, ordinances, programs, permits, guidances, orders and consent
decrees relating to the environment or to public health, safety and
environmental matters, or petroleum products, or radon radiation, or oil or
hazardous substances, including, but not limited to, the Resource Conversation
and Recovery Act, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, the Toxic Substances Control Act, the Clean Water Act,
the Clean Air Act, the River and Harbor Act, the Water Pollution Control Act,
the Marine Protection Research and Sanctuaries Act, the Deep Water Port Act, the
Safe Drinking Water Act, the Superfund Amendments and Reauthorization Act of
1986, the Federal Insecticide, Fungicide and Rodenticide Act, the Mineral Lands
and Leasing Act, the Surface Mining Control and Reclamation Act, the Oil
Pollution Act of 1990, state and federal superlien and environmental cleanup
programs and laws, U.S. Department Transportation regulations, laws regulating
hazardous, radioactive and toxic materials and underground petroleum products
storage tanks, and all similar state, federal and local laws and regulations.
2
Event of Default - any one of the events enumerated in Section 9.1
hereof.
GAAP - generally accepted accounting principles in the United States of
America in effect from time to time consistently applied.
Issuer - Xxxxxx and Sons, Inc., a Maryland corporation.
Lien - any encumbrance in property (real, personal or mixed, and
tangible or intangible) securing an obligation owed to, or a claim by, a Person
other than the owner of the property, whether such interest is based on the
common law, statute or contract, and including, but not limited to, the security
interest, security title or Lien arising from a security agreement, mortgage,
deed of trust, deed to secure debt, encumbrance, pledge, conditional sale or
trust receipt or a lease, consignment or bailment for security purposes. For the
purpose of this Agreement, Borrower shall be deemed to be the owner of any
property which it has acquired or holds subject to a conditional sale agreement
or other arrangement pursuant to which title to the property has been retained
by or vested in some other Person for security purposes.
Loan or Loans - the loan in the initial principal amount of
$14,500,000.00 advanced by the Bank to the Borrower from time to time evidenced
by the Note(s) described in Section 2.1 of this Agreement (and any substitutions
therefor, extensions thereof, or renewals thereof).
Loan Account - the loan account established on the books of Bank
pursuant to Section 2.5 hereof.
Loan Commitment - that certain Loan Commitment between Bank and
Borrower dated as of July 5, 2000, as may be amended.
Loan Documents - this Agreement, the Note(s), the Pledge Agreement and
each and every mortgage, deed of trust, guarantee, reimbursement agreement,
credit agreement, loan agreement, note, security agreement, financing statement
or other instrument executed and delivered to evidence the Loans or any other
Obligation, to constitute collateral for the Loans or any other Obligation, or
to evidence security for the Loans or any other Obligation, and any and all
other agreements, instruments, and documents heretofore, now or hereafter,
executed by Borrower and delivered to Bank in respect to the transactions
contemplated by this Agreement.
Loan Period - The Loan Period shall commence upon satisfaction of the
conditions to lending set forth in Article III and shall continue for five (5)
years from the first day of the month following the Closing Date, unless sooner
terminated according to the provisions hereof.
Loan Year - each twelve (12) month period commencing with the first day
of the month following the date of the Closing Date and on each anniversary
thereof.
Maximum Rate - the maximum non-usurious rate of interest permitted by
Applicable Law that any time, or from time to time, may be contracted for,
taken, reserved, charged or received on the Debt in question or, to the extent
permitted by Applicable Law, under such
3
Applicable Laws that may hereafter be in effect and which allow a higher maximum
non-usurious interest rate than Applicable Laws now allow. Notwithstanding any
other provision hereof, the Maximum Rate shall be calculated on a daily basis
(computed on the actual number of days elapsed over a year of 365 or 366 days,
as the case may be).
Note(s) - each promissory note executed and delivered by Borrower to
Bank evidencing all or part of the Loans (and any substitutions therefor,
extensions thereof, or renewals thereof).
Obligations - all Loans and all other advances, debts, liabilities,
obligations, covenants and duties owing, arising, due or payable from Borrower
to Bank of any kind or nature, present or future, whether or not evidenced by
any note, guaranty or other instrument, whether arising under this Agreement or
any of the other Loan Documents or otherwise, whether direct or indirect
(including those acquired by assignment), absolute or contingent, primary or
secondary, due or to become due, now existing or hereafter arising and however
evidenced or acquired. The term includes, without limitation, all interest,
charges, expenses, fees, attorneys' fees and any other sums chargeable to
Borrower under any of the Loan Documents and all rights Bank may at any time or
times have to reimbursement in connection with any letter of credit or guaranty
issued for Borrower's benefit.
Permitted Liens - any Lien of a kind specified in Section 7.3 of this
Agreement.
Person - an individual, partnership, corporation, joint stock company,
firm, land trust, business trust, limited liability company, limited liability
partnership, unincorporated organization, or other business entity, or a
government or agency or political subdivision thereof.
Prime Rate - the rate designated as the "Prime Rate" in the "Money
Rates" table published each business day in the Midwest edition of the Wall
Street Journal. If such rate is unavailable at any time, the Bank shall select a
new index or other appropriate measure as a basis for setting the interest rate
in lieu thereof. The Prime Rate might or might not be the lowest interest rate
charged by Bank for commercial or other extensions of credit.
Solvent - as to any Person, means such Person (i) owns property, real,
personal, and mixed, whose aggregate fair saleable value is greater than the
amount required to pay all of such Person's Debt (including contingent debts),
and (ii) is able to pay all of its Debt as such Debt matures and (iii) has
capital sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage.
Subordinated Debt - any Debt of the Borrower owed to any Affiliate and
which is fully subordinated to the Loan (including principal, interest, and
agreed charges) in a manner satisfactory to the Bank (which may be either
according to its terms or by separate agreement).
Subsidiary - any corporate entity or partnership, or other business
entity, a controlling interest of which is owned by the Borrower.
Tangible Net Worth - the consolidated shareholder's equity of Borrower
(i) less the book value of all intangibles, such as goodwill, patents,
trademarks and other similar intangibles, as
4
determined in accordance with GAAP after deduction of all applicable reserves
(ii) less all amounts due from Affiliates of Borrower and (iii) plus all amounts
due to Affiliates of Borrower (specifically and expressly excluding Debt of the
Borrower to BankAtlantic, FSB obtained in the ordinary course of and pursuant to
the reasonable requirements of the land acquisition, real estate ownership,
investments, lending, leasing, operation or development, land development,
homebuilding and all other real estate related businesses now or hereinafter
conducted by the Borrower and/or its Subsidiaries (collectively "Authorized
Business"), including without limitation, any loans for letters of credit issued
in connection with the acquisition or development of land or the construction of
dwelling units thereon), including the loans identified on Schedule 1.1.
1.2 Accounting Terms. All accounting terms used herein shall be
construed in accordance with GAAP.
1.3 Interpretation. The terms "herein", "hereof", and "hereunder",
and other words of similar import refer to this Agreement as a whole and not to
any particular section, paragraph or subdivision. Any pronouns used shall be
deemed to cover all genders. Whenever the singular or plural number is used
herein, it shall equally include the other. All references to statutes and
related regulations shall include any amendments of same and any successor
statutes and regulations. All references to any instruments or agreements,
including, without limitation, references to any of the Loan Documents shall
include any and all modifications or amendments thereto and any and all
extensions or renewals thereof.
1.4 Uniform Commercial Code. All other terms contained in this
Agreement shall, unless otherwise defined herein or unless the context otherwise
indicates, have the meanings provided for by the Uniform Commercial Code of the
State of Florida.
ARTICLE 2
THE LOAN
2.1 Loan.
(a) Subject to all terms set forth herein, Bank agrees to
loan to Borrower the original principal amount of Fourteen Million Five Hundred
Thousand and no/100 Dollars ($14,500,000.00).
(b) The obligation to repay the Loan shall be evidenced
by one or more Note(s) payable to the order of the Bank and maturing upon the
earlier to occur of an Event of Default or the expiration of the Loan Period.
Amounts due under the Note(s) and otherwise under this Agreement and under the
Loan Documents shall be reflected in the Loan Account.
(c) At any time, Bank may require that Borrower submit
(and the Bank receive) a Borrower's Report in such form as may be reasonably
requested by Bank from time to time with respect to the status of the Loan
within ten (10) business days of Bank providing written notice to Borrower. Each
such Borrower's Report shall be signed by an officer or employee of Borrower
authorized by Borrower to execute such reports, whose name(s) shall be
5
included in a certificate furnished to the Bank. The Bank agrees to provide
reasonable estoppel information which Borrower may request of Bank from time to
time.
(d) Each borrowing, including additional extensions of
credit, if any, under the Loan shall be effected by crediting the amount thereof
to the regular checking account of Borrower maintained with the Bank or with
another bank approved by the Bank (recognizing that City National Bank of
Florida, Comerica Bank and BankAtlantic, FSB have been approved by Bank).
(e) The principal amount of the Loan outstanding from
time to time hereunder shall bear interest at the Base Rate. Interest shall be
paid to Bank on the amount of the Loan outstanding and shall be payable monthly
in arrears on the first day of each month beginning with October 1, 2000 and
continuing on the same day of each month thereafter through and until such time
as there remains no unpaid principal balance on the amounts advanced to the
Borrower. The applicable interest rate on the Loan shall change as and when the
Base Rate changes from time to time. Interest shall be calculated based on a 360
day year (i.e., computed on the actual number of days elapsed over a year of 360
days unless reference to a 365 or a 366-day year is necessary in order not to
exceed the highest rate permitted by Applicable Law). From and after the
occurrence of an Event of Default until such Event of Default is cured, the
principal amount of the Loan outstanding from time to time shall, subject to the
provisions of the following subsection, bear interest at the Default Rate.
Additionally, for each payment due pursuant to this Agreement which is more than
ten (10) calendar days overdue, Bank may charge a fee (the "Late Charge") equal
to five percent (5%) of each overdue payment to reimburse Bank for the extra
expense involved in handling delinquent payments.
(f) In addition to monthly interest payments, principal
shall be due and payable in monthly installments on the first day of each month
beginning with October 1, 2000 and continuing on the same day of each month
thereafter through and until such time as there remains no unpaid principal
balance or until the expiration of the Loan Period. The amount of each monthly
installment of principal shall be adjusted annually and, during each Loan Year,
shall be in the amount shown in the second column below and opposite the
applicable Loan Year designation:
Loan Year Monthly Principal
Reduction Payment
Loan Year One $125,000.00
Loan Year Two $150,000.00
Loan Year Three $175,000.00
Loan Year Four $175,000.00
Loan Year Five $175,000.00
Each month, Bank will provide an invoice to Borrower setting forth the interest
and principal due for such month at least five (5) days in advance of the
payment date. On the date which is five (5) years after the Closing Date,
Borrower will make a balloon payment in an amount equal to the then outstanding
principal balance of the Loan, which balance is anticipated to be $4,900,000.00
more or less. Additionally, for each scheduled payment of principal due
6
pursuant to this Agreement which is more than ten (10) calendar days overdue,
Bank may charge a fee (the "Late Charge") equal to five percent (5%) of each
overdue payment to reimburse Bank for the extra expense involved in handling
delinquent payments.
(g) Borrower acknowledges and agrees that the provisions
herein and in the Note(s) relating to the Default Rate and the Late Charge
represent a fair and reasonable estimate by Borrower and Bank of a fair average
compensation for the loss that may be sustained by Bank due to the failure of
Borrower to make timely payments with respect to the Obligations and for the
cost and expenses that may be incurred by Bank by reason of the occurrence of an
Event of Default, the parties recognizing that the damages caused by such extra
administrative expenses and loss of the use of funds is impracticable or
extremely difficult to ascertain or estimate. Interest at the Default Rate shall
be paid without prejudice to the rights of Bank to collect any other amounts
provided to be paid hereunder.
2.2 Loan Fee. Borrower shall pay to Bank a loan fee of $145,000.00
(the "Loan Fee") (one-half of which has previously been paid), which shall be
deemed fully earned at the closing of the transactions contemplated hereby, and
shall not be subject to rebate except as may be required by any Applicable Law.
The Loan Fee shall compensate Bank for the costs associated with the
origination, structuring, processing, approving and closing of the transactions
contemplated by this Agreement, including, but not limited to, administrative,
general overhead and lost opportunity costs, but not including any out-of-pocket
or other expenses for which Borrower has agreed to reimburse Bank pursuant to
the Loan Commitment.
2.3 Loan Account. Bank shall enter disbursements hereunder or
under the Note(s) as debits to the Loan Account and shall also record in the
Loan Account all payments made by Borrower and any proceeds of Collateral which
are finally paid to Bank, and may record therein, in accordance with customary
accounting practice, all charges and expenses properly chargeable to Borrower
hereunder.
2.4 Prepayment. Borrower shall have the right to prepay the
indebtedness, in whole or in part, on any loan payment date (as provided in
Sections 2.1(e) and 2.1(f)) without premium or penalty.
2.5 Term. This Agreement shall remain in force and effect until
the Loan and the Obligations, and any renewals or extensions, and all interest
thereon and costs provided for herein with regard to either of them have been
indefeasibly paid or satisfied in full. Subject to the foregoing sentence,
Borrower shall have the right to terminate this Agreement upon payment of all
outstanding principal, accrued interest and other charges owing under the terms
of this Agreement. The indemnities provided for in Article X shall survive the
payment in full of the Loan and the Obligations and the termination of this
Agreement.
7
2.6 Use of Proceeds. Borrower shall use the proceeds of the Loan
for the following purposes and no other: to refinance an existing loan held by
City National Bank, to finance costs incurred in connection with the closing of
the Loan, and for other general corporate purposes. It is a condition to closing
that the Borrower furnish Bank with satisfactory evidence of the exact
outstanding balance as of the Closing Date of the City National Bank loan being
refinanced.
2.7 Payments. All sums paid to the Bank by Borrower hereunder
shall be paid directly to the Bank in immediately available funds no later than
3:00 p.m., Boca Raton, Florida time on the date on which payment is due, except
if such date is not a Business Day such payment shall then be due on the first
Business Day after such date, but interest shall continue to accrue until the
date payment is received. Any payment received after 3:00 p.m. Boca Raton,
Florida time shall be deemed to have been received on the immediately following
Business Day for all purposes, including, without limitation, the accrual of
interest on principal. The Bank shall send Borrower statements of all amounts
due hereunder, which statements shall be considered correct and presumptively
binding on the Borrower unless the Borrower notifies the Bank to the contrary
within ten (10) days of its receipt of any statement which it deems to be
incorrect. The Bank may, in its sole discretion, (a) charge against any deposit
account of the Borrower all or any part of any amount due hereunder, including,
without limitation, the fees and expenses of the Bank to be paid by Borrower as
provided for in Sections 11.1 through 11.3 of this Agreement, and any commitment
or servicing fee due the Bank, and (b) advance to Borrower, and charge to the
Loan, a sum sufficient each month to pay all interest accrued on the Loan and
fees and expenses due under this Agreement, including, without limitation, the
fees and expenses of the Bank to be paid by Borrower as provided for in Sections
11.1 through 11.3 of this Agreement, and any commitment or servicing fee due the
Bank, during or for the immediately preceding month or any month prior. Borrower
shall be deemed to have requested an advance under the Loan upon the occurrence
of an overdraft in any of Borrower's checking accounts maintained with the Bank
or another bank owned by Bank.
2.8 Application of Payments. Borrower irrevocably waives the right
to direct the application of any and all payments and collections at any time or
times hereafter received by Bank from or on behalf of Borrower or from any of
the Collateral, and Borrower does hereby irrevocably agree that Bank shall have
the continuing exclusive right to apply such payments and collections received
at any time or times hereafter by Bank or its agent against the Obligations, in
such manner as Bank may deem advisable, notwithstanding any entry by Bank upon
any of its books and records. If for any reason, a credit balance exists in the
Loan Account, such credit balance shall not accrue interest in favor of Borrower
but shall be available to Borrower at any time or times for so long as no Event
of Default exists.
ARTICLE 3
CONDITIONS OF LENDING
Bank shall not be obligated to make the Loan, unless at the time
thereof the following conditions shall have been met:
3.1 Corporate Proceedings. All proper corporate proceedings shall
have been taken by Borrower to authorize this Agreement and the transactions
contemplated hereby.
8
3.2 Documentation. All instruments and proceedings in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to Bank, and Bank shall have received on the date of this
Agreement copies of all documents, including records of corporate proceedings,
which it may have requested in connection therewith, including, without
limitation, certified copies of resolutions adopted by the Board of Directors of
the Borrower, certificates of good standing, and certified copies of the
Articles of Incorporation and By-Laws, and all amendments thereto, of the
Borrower.
3.3 Loan Documents. Bank shall have received executed copies of
all instruments evidencing or securing the Loan.
3.4 No Default. No event shall have occurred or be continuing
which constitutes an Event of Default or which would constitute an Event of
Default with the giving of notice or the lapse of time or both; and neither the
business nor assets nor the condition, financial or otherwise, of Borrower shall
have been adversely affected in any material manner which is not reimbursed or
otherwise paid for by applicable insurance as the result of any fire, explosion,
accident, strike, riot, condemnation, act of God, or any other event or
development.
3.5 Reports. Bank shall have received all reports and information
from Borrower called for under the Agreement as and when due.
3.6 Payment of Fees. Payment by Borrower of all fees and expenses
required by this Agreement.
3.7 Opinion of Counsel. Bank shall have received on the date of
this Agreement an opinion from counsel to Borrower satisfactory to Bank and with
respect to such other matters relating to the transactions contemplated hereby
as the Bank may reasonably request.
3.8 Incumbency Certificate. Bank shall have received an incumbency
certificate, dated as of the date of this Agreement, executed by the Secretary
or Assistant Secretary of Borrower, which shall identify by name and title and
bear the signature of the officer of such Borrower authorized to sign this
Agreement and the other Loan Documents on behalf of the Borrower. The Bank shall
be entitled to rely upon such incumbency certificate in completing the
transactions contemplated herein or in any Loan Document and in all its other
dealings with Borrower.
3.9 Material Adverse Changes. As of the Closing Date, there shall
be no material adverse change in the credit or financial condition of Borrower.
If any action, voluntary or otherwise, is commenced under any bankruptcy,
insolvency, reorganization or similar laws by or against the Borrower or any
general partner or affiliate of any of the Borrower, or any person that owns or
controls (as defined in the laws and regulations applicable to Bank), any of the
foregoing, or if any property owned by the Borrower becomes subject to any
foreclosure, levy, execution to satisfy indebtedness or similar action, or if
the Borrower or any partner or affiliate of any of the Borrower is in default
under any other indebtedness (other than ordinary trade payables not exceeding
$50,000 in the aggregate and not more than 30 days past due), the Bank
9
shall not be obligated to close the Loan. It is a condition to closing that, as
of the Closing Date, there shall have occurred no change in applicable law or
regulations or interpretations thereof which would make it illegal for the Bank
to perform its obligations pursuant to the Loan Commitment or which would have a
material adverse effect on the Bank in the event that the transactions
contemplated by the Loan Commitment were to be consummated (which lien must be
satisfied on the closing date).
3.10 Lien Search. Bank shall have received a report from the
Uniform Commercial Code Division of the Secretary of State (or similar division)
of Florida and Maryland indicating that there are no Liens against the
Collateral, except for any lien imposed in connection with the loan from City
National Bank to Borrower.
3.11 Disbursement Authorization. Borrower shall have delivered to
Bank such disbursement authorizations, draw requests, and other documents and
writings as Bank shall have requested evidencing Borrower's request for
disbursement of funds.
3.12 Payoff information. Borrower shall have furnished Bank with
satisfactory evidence of the exact outstanding balance as of the Closing Date of
the City National Bank loan being refinanced.
3.13 Issuer Loan. It is agreed that as a condition to the execution
of this Agreement and the funding of the Loan, Issuer and Bank shall
simultaneously enter into that certain Loan Agreement by and between Issuer and
Bank in an amount not to exceed Five Million and no/100 Dollars ($5,000,000.00)
(the "Second Loan"). On each date subsequent to the Closing Date, there may not
be any defaults under the Second Loan. Any defaults under the Second Loan not
cured within the applicable cure period shall constitute a default under this
Agreement as further provided herein.
3.14 Additional Documents. Bank shall have received such additional
legal opinions, certificates, proceedings, instruments and other documents as
the Bank or its counsel may reasonably request to evidence (i) compliance by the
Borrower with legal requirements, (ii) the truth and accuracy, as of the date of
this Agreement, of the representations of the Borrower contained herein, and
(iii) the due performance or satisfaction by the Borrower, at or prior to the
date hereof, of all agreements required to be performed and all conditions
required to be satisfied by the Borrower pursuant hereto, including, without
limitation, all such matters as are listed on preliminary closing checklist
issued by Lender and furnished to Borrower.
ARTICLE 4
SECURITY FOR LOAN
4.1 Security. The Loan and each Note shall be secured by a first
priority security interest in Borrower's shares of the capital stock of Issuer,
pursuant to that certain Pledge Agreement of even date herewith.
10
The Borrower agrees to execute and deliver, or cause the execution and
delivery of, such security agreements, assignments, consents, subordination
agreements, and financing statements as may be required by Bank to evidence such
security, all in form satisfactory to Bank.
ARTICLE 5
REPRESENTATIONS, WARRANTIES AND GENERAL COVENANTS
Borrower represents, warrants and covenants to and with Bank, which
representations, warranties and covenants shall survive until the Obligations
are paid in full, that:
5.1 Organization and Qualification. The Borrower is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Florida; has the corporate power to own its properties and to carry on
its business as now being conducted; and is duly qualified to do business and is
in good standing in every jurisdiction in which the character of the properties
owned by it or in which the transaction of its business makes its qualification
necessary. Upon the written consent of the Bank as to the form and substance of
any Operating Agreement, Articles of Organization, Articles of Merger or
otherwise applicable documents, which consent may be conditioned upon the
inclusion in such documents of provisions required by the Bank and receipt by
the Bank of any additional security documents or amended Loan Documents (to be
prepared by the Bank's outside counsel at Borrower's expense) deemed necessary
by the Bank in its reasonable discretion, the Borrower shall have the right to
convert and/or to become a limited liability company.
5.2 Corporate Power and Authorization. Borrower has full power and
authority to enter into this Agreement, to borrow hereunder, to execute and
deliver the Note(s) and the other Loan Documents and to incur the obligations
provided for herein, all of which have been authorized by all proper and
necessary corporate action.
5.3 Enforceability. This Agreement and each of the other Loan
Documents constitute, and each Note when executed and delivered for value
received will constitute, a valid and legally binding obligation of Borrower
enforceable in accordance with their respective terms and will not violate,
conflict with, or constitute any default under any law, government regulation,
Borrower's Articles of Incorporation or By-Laws, or any other agreement or
instrument binding upon Borrower, subject to bankruptcy and insolvency laws,
equitable principles and requirements as to commercial reasonableness and good
faith.
5.4 Pending Actions. As of the Closing Date, Borrower is not a
defendant, or a plaintiff against whom a counterclaim or crossclaim has been
asserted, in any civil or criminal action, suit or litigation, and no action or
investigation is pending or, so far as Borrower's officers and directors know,
threatened before or by any court or administrative agency which might result in
any material adverse change in the financial condition, operations or prospects
of Borrower, except as set forth on Schedule 5.4.
5.5 Financial Statements. The financial statements of Borrower
dated March 31, 2000 heretofore delivered to Bank and all other financial
statements and reports furnished by Borrower to Bank are complete and correct
and fairly present the financial condition of Borrower
11
and the results of its operations and transactions as of the dates and for the
periods referred to and have been prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved. There are no material
liabilities, direct or indirect, fixed or contingent, of Borrower as of the date
of such financial statements which are not reflected therein or in the note(s)
thereto. Neither said financial statements nor any other financial statements,
reports, and information furnished by Borrower to Bank contains any untrue
statement of a material fact or omits a material fact necessary to make the
statements contained therein or herein not misleading. There is no fact which
Borrower has failed to disclose to Bank in writing which materially affects
adversely or, so far as Borrower can now foresee, will materially affect
adversely the Collateral, business, prospects, profits or condition (financial
or otherwise) of Borrower or the ability of Borrower to perform this Agreement.
5.6 Title to Properties. Borrower has good and marketable title to
all of its assets to the extent owned, subject to no Lien, mortgage, pledge,
encumbrance, or charge of any kind, except inchoate Liens arising by operation
of law for obligations which are not yet due and Permitted Liens. Borrower
enjoys peaceable and undisturbed possession under all leases under which it is
operating, and none of such leases contain any provisions which may materially
and adversely affect or impair the operations of the Borrower.
5.7 Taxes. Borrower has filed all federal, state and local tax
returns which are required to be filed and has paid, or made adequate provision
for the payment of, all taxes which have or may become due pursuant to said
returns or to assessments received by Borrower, including, without limitation,
all applicable federal, state, and local employee withholding taxes.
5.8 Title to Collateral. Borrower is the sole owner of the
Collateral free from any adverse Liens, security interests or other
encumbrances. Borrower shall defend to defend, the Collateral against all claims
and demands of all other parties who at any time claim any interest in the
Collateral.
5.9 Place of Business. Borrower's chief executive office is
located at 0000 X. Xxxxxxx Xxxxxxxxx, 0xx Xxxxx, Xxxx Xxxxxxxxxx, Xxxxxxx 00000,
and it has not changed the location of its chief executive office within the
last three (3) years.
5.10 Full Disclosure. All information furnished by Borrower to the
Bank concerning the Borrower, its financial condition, the Collateral, or
otherwise for the purpose of obtaining credit or an extension of credit, is, or
will be at the time the same is furnished, accurate and correct in all material
respects and complete insofar as completeness may be necessary to give the Bank
a true and accurate knowledge of the subject matter.
5.11 Borrower's Name. Other than the name change from BankAtlantic
Development Corporation to Xxxxxx Corporation, Borrower has not otherwise
changed its name or been known by any other name within the last five (5) years.
Borrower does not now use nor has it ever used any trade or fictitious name in
the conduct of its business.
12
5.12 Existing Debt. Borrower is not in default with respect to any
of its existing Debt or with respect to any material agreement to which Borrower
is a party, which would have a material adverse effect on its ability to repay
the Loan.
5.13 Insolvency. Borrower is now and, after giving effect to the
transactions contemplated hereby, at all times will be, Solvent.
5.14 Subsidiaries. As of the Closing Date, Borrower has no
Subsidiaries other than those listed in Schedule 5.14.
5.15 Environmental Matters. To the best of Borrower's knowledge and
belief, Borrower is in compliance with all Environmental Regulations and with
all other federal, state and local laws and regulations relating to the
environment and pollution, including such laws and regulations regulating
hazardous, radioactive and toxic materials and underground petroleum products
storage tanks. No assessment, notice of (primary or secondary) liability or
notice of financial responsibility, and no notice of any action, claim,
investigation, proceeding, or inquiry to determine such liability or
responsibility, or the amount thereof, or to impose civil penalties has been
received by Borrower, and there are no facts, conditions or circumstances known
to Borrower which could result in any investigation or inquiry if all such
facts, conditions, and circumstances, if any, were fully disclosed to the
applicable governmental authority other than for which remediation will occur to
the extent required. Borrower has paid any environmental excise taxes due and
payable, including without limitation, those imposed pursuant to Sections 4611,
4661, or 4681 of the Internal Revenue Code of 1986, as amended from time to
time. Borrower has not obtained and is not required to obtain any permits,
licenses, or similar authorizations to construct, occupy, operate or use any
buildings, improvements, fixtures or equipment in connection with its business
by reason of any Environmental Regulations. No oil, toxic or hazardous
substances or solid wastes have been disposed of or released by Borrower in
connection with the operation of its business in violation of law and Borrower
will not dispose of or release oil, toxic or hazardous substances or solid
wastes at any time in its operation of its business in violation of law (the
terms "hazardous substance" and "release" shall have the meanings specified in
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended ("CERCLA"), and the terms "solid waste" and "disposal,"
"dispose" or "disposed" shall have the meanings specified in the Resource
Conservation and Recovery Act of 1976, as amended ("RCRA"), except that if such
acts are amended to broaden the meanings thereof, the broader meaning shall
apply herein).
5.16 Ownership. As of the Closing Date all issued and outstanding
capital stock of the Borrower is owned by BankAtlantic, FSB, provided
BankAtlantic, FSB reserves the right to convey or otherwise take action with
respect to the stock of Borrower, provided that BankAtlantic, FSB shall own a
minimum of eighty percent (80%) of the outstanding capital stock of Borrower. As
of the Closing Date, there are no outstanding warrants, options, or rights to
purchase any shares of capital stock of Borrower, nor does any Person have a
Lien upon any of the capital stock of Borrower.
5.17 Labor Relations. Neither Borrower nor any of its Subsidiaries
is a party to any collective bargaining agreement, and there are no material
grievances, disputes or controversies
13
with any union or any other organization of Borrower's employees, or threats of
strikes, work stoppages or any asserted pending demands for collective
bargaining by any union or organization.
5.18 Partnerships. Except as shown in Schedule 5.18, as of the
Closing Date, Borrower is not a partner or joint venturer with any other Person
or a participant in any business enterprise other than related to real estate
transactions, nor does Borrower have any material contingent liabilities of any
description other than as indicated in the financial statements heretofore
delivered to Bank
5.19 Surety Obligations. As of the Closing Date, other than in
connection with the Second Loan or as shown in Schedule 5.19, Borrower is not
obligated as guarantor, surety or indemnitor under any indemnity, guaranty,
surety or similar bond or other contract issued or entered into to assure
payment, performance or completion of performance of any undertaking or
obligation of any Person.
5.20 No Approval. No authorization or approval or other action by,
and no notice to or filing with, any federal, state, or local government body,
agency, or authority is required for the due execution, delivery, and
performance by Borrower of this Agreement, the Note(s), or the Loan Documents.
5.21 Racketeering. Borrower is not engaged in any activity that
might constitute a pattern of racketeering activity or in any other conduct that
might subject all or a material portion of Borrower's assets to forfeiture.
5.22 Patents, Trademarks, Copyrights and Licenses. Borrower owns or
possesses all the patents, trademarks, service marks, trade names, copyrights
and licenses necessary for the present and planned future conduct of its
business without any known conflict with the rights of others.
5.23 Representations True. No representation or warranty by the
Borrower contained herein or in any certificate or other document furnished by
the Borrower pursuant hereto contains any untrue statement of material fact or
omits to state a material fact necessary to make such representation or warranty
not misleading in light of the circumstances under which it was made.
ARTICLE 6
GENERAL COVENANTS
Borrower agrees and covenants that until the Obligations have been paid
in full and until the Bank has no further obligation to make advances under the
Loan, Borrower shall:
6.1 Insurance. Maintain insurance with insurance companies
reasonably satisfactory to Bank on such of its properties, in such amounts and
against such risks as is customarily maintained in similar businesses operating
in the same vicinity, and shall file with Bank upon request, from time to time,
a detailed list of the insurance then in effect, stating the names of the
insurance companies, the amounts and rates of the insurance, dates of expiration
thereof, and the
14
properties and risks covered thereby, and, within 10 days after notice in
writing from Bank, shall obtain such additional insurance as Bank may reasonably
request. The Borrower shall furnish to the Bank insurance certificates, in form
and substance reasonably satisfactory to the Bank, evidencing compliance by it
with the terms of this Section and, upon the request of the Bank at any time,
the Borrower shall furnish the Bank with photostatic copies of the policies
required by the terms of this Section. The Borrower will cause each insurer
under each of the policies to agree (either by endorsement upon such policy or
by letter addressed to the Bank) to give the Bank at least 10 days, prior
written notice of the cancellation of such policies in whole or in part or the
lapse of any coverage thereunder. Borrower agrees that it will not take any
action or fail to take any action which action or inaction would result in the
invalidation of any insurance policy required hereunder. At least 10 days prior
to the date the premiums on each such policy or policies shall become due and
payable, the Borrower shall furnish to the Bank evidence of the payment of such
premiums. Borrower shall furnish to the Bank such evidence of insurance as Bank
may require.
6.2 Corporate Existence; Qualification. Maintain its corporate
existence and, in each jurisdiction in which the character of the property owned
by it or in which the transaction of its business makes its qualification
necessary, maintain good standing.
6.3 Taxes. During each fiscal year, accrue all current tax
liabilities of all kinds, all required withholding of income taxes of employees,
all required old age and unemployment contributions, all required payments to
employee benefit plans, and pay the same when they become due.
6.4 Compliance with Laws. Comply with all Applicable Laws,
including, without limitation, Environmental Regulations, and pay all taxes,
assessments, charges, claims for labor, supplies, rent, and other obligations in
the ordinary course of business, subject to Borrower's right to challenge any of
such obligations. Specifically, Borrower shall pay when due all taxes and
assessments upon the Collateral, this Agreement, the Note(s), or any Loan
Document, including, without limitation, any stamp taxes or intangibles taxes
imposed by virtue of the transactions outlined herein.
6.5 Financial Statements. Furnish to Bank for each fiscal quarter
and each fiscal year financial statements including a statement of financial
condition as of the end of such quarter or year, and statements of operations,
statements of cash flows, changes in financial position, and changes in
shareholders' equity for such quarter or year, setting forth in each case in
comparative form the figures for the previous fiscal quarter or year, all in
accordance with GAAP consistently applied and consistent with those applied in
the preparation of the financial statements delivered to the Bank in connection
with the Loan Commitment, and in the case of the annual statements, accompanied
by an audit report of independent certified public accountants of recognized
standing, selected by the Borrower and satisfactory to the Bank, which audit
report shall be prepared in accordance with the standards established by the
American Institute of Certified Public Accountants. The quarterly financial
statements shall be furnished within sixty (60) days following the end of each
fiscal quarter of the Borrower, and the annual statements shall be furnished
within one hundred twenty (120) days following the end of each fiscal year of
the Borrower. Within sixty (60) days after the end of each of the quarters of
each fiscal year of the
15
Borrower, Borrower shall furnish to Bank a certificate of the president or the
chief financial officer of the Borrower, in the form of Exhibit "G" hereto, (a)
certifying that to the best of his knowledge no default with respect to the Loan
has occurred and is continuing, or if a default has occurred and is continuing,
a statement as to the nature thereof and the action which is proposed to be
taken with respect thereto, and (b) containing computations demonstrating
compliance with the financial covenants contained in this Agreement.
6.6 Visits and Inspections. Permit persons designated by Bank to
inspect any and all of the property and corporate and financial books and
records of Borrower and to discuss its affairs with its officers and employees
at such reasonable times as Bank shall request and furnish Bank with such
miscellaneous information of Borrower as it may request.
6.7 Payments on Note(s). Duly and punctually pay the principal and
interest on the Note(s), in accordance with the terms of this Agreement and of
the Note(s), and pay all other Debt of Borrower reflected on the financial
statements delivered to Bank and referred to in Sections 5.5 and 6.5 hereof and
all other Debt incurred after the date hereof in accordance with the terms of
such Debt, it being understood, however, that this Section shall not be deemed
to permit any Debt in violation of the provisions of Sections 7.1, 7.2 and 7.3
hereof.
6.8 Conduct of Business. Conduct its business as now conducted and
do all things necessary to preserve, renew and keep in full force and effect its
rights, privileges and franchises necessary to continue its business as same
exists from time to time.
6.9 Maintenance of Properties. Keep its properties in good repair,
working order and condition, reasonable wear and tear excepted, and from time to
time make all needed and proper repairs, renewals, replacements, additions, and
improvements thereto as determined to be necessary by Borrower in the ordinary
course of its business.
6.10 Additional Documents. Join the Bank in executing any security
agreements, assignments, consents, financing statements or other instruments, in
form satisfactory to the Bank, as the Bank may from time to time request in
connection with the Collateral and the other security for the Loan referred to
in Section 4.1 hereof.
6.11 Notice to Bank. Promptly notify the Bank of (i) any event
causing a material loss or depreciation in value of the Collateral and the
amount of such loss or depreciation, (ii) if Borrower becomes aware of the
occurrence of any Event of Default or of any fact, condition or event that, with
the giving of notice or passage of time, or both, could become an Event of
Default or of the failure of the Borrower to observe any of its undertakings
hereunder, or (iii) any material lawsuit involving Borrower.
6.12 Subordination of Debt. The term "Specified Loans" shall mean
(i) any loan described in Schedule 6.12 (including any renewals or extensions
thereof), and (ii) any future loans or letters of credit issued in connection
with the Authorized Business and any future real estate acquisition, development
or construction loans each of which is obtained from BankAtlantic, FSB in the
ordinary course of and pursuant to the reasonable requirements of the Borrower's
business and upon fair and reasonable terms no less favorable to the Borrower
than it
16
would obtain in a comparable arm's-length transaction with an institutional
lender who is not an Affiliate of Borrower, all documents or instruments
executed in connection with any extension of credit to Borrower by BankAtlantic,
FSB. The Specified Loans shall not be subordinate to the Loan. Any loan made by
BankAtlantic, FSB to Borrower which is not a Specified Loan shall be
subordinated to the Loan by a subordination agreement reasonably satisfactory in
form and substance to the Bank, executed by Borrower and BankAtlantic, FSB,
subordinating in right of payment and claim all Debt owed by Borrower to
BankAtlantic, FSB and any future advances thereon to the full and final payment
of the Obligations.
Upon the written request of Borrower specifying the terms and
conditions of any proposed loan, the Bank shall provide written notice to
Borrower that the loan in question being made from BankAtlantic, FSB to the
Borrower is or is not, in Bank's opinion, required to subordinate to the Loan
and setting forth the basis for such opinion if Bank believes that such loan is
required to be subordinated to the Loan.
6.13 Collection of Accounts. Pursue collection of all amounts due
Borrower by others, including Affiliates of Borrower as Borrower may determine
in its reasonable business judgment.
6.14 Auditors; Insurance Representatives and Agents. Furnish the
Bank with a copy of each letter written to the Borrower by its independent
certified public accountant concerning internal controls and management review
immediately upon receipt of same and any comments made by the Borrower with
respect thereto.
6.15 Bank Accounts. Maintain its principal bank accounts with the
Bank or another bank approved by the Bank, it being recognized that City
National Bank of Florida, Comerica Bank and BankAtlantic, FSB are acceptable to
Bank.
6.16 Business Records. Keep, and cause each Subsidiary to keep,
adequate records and books of account with respect to its business activities in
which proper entries are made in accordance with GAAP reflecting all its
financial transactions.
6.17 Financial Covenants. Maintain at all times that this Agreement
is in effect the following:
(a) total Tangible Net Worth during each calendar year
shown below of not less than the amounts specified as follows:
Calendar Tangible Net
Year Worth
2000 $48,000,000:
2001 $50,400,000
2002 $52,920,000
2003 $55,566,000
2004 $58,344,300
2005 $61,261,515
17
(b) unrestricted liquidity, in the form of cash,
securities, and other cash equivalents, of not less than Three Million Dollars
($3,000,000.00)
(c) a debt service coverage ratio of 1.5 to 1 or greater,
with such ratio computed by dividing the Borrower's net income for the previous
year (in accordance with GAAP) by the sum of the current maturities of the Loan,
including interest, for the subsequent twelve (12) month period. This
computation shall be made annually commencing with the end of Borrower's first
fiscal year end during the Loan Period, with such ratio to be calculated each
year as of the end of Borrower's fiscal year.
6.18 First Right to Finance: Borrower agrees it shall provide to
the Bank the first right to finance (on the same terms then applicable to
similar credit extensions by the Bank) any land or lot acquisition or
development or residential construction undertaken by the Issuer or any
Subsidiary of the Issuer during the term of the Loan. If Bank has not agreed to
provide financing (subject to the Bank's normal and customary terms and
conditions then applicable to similar credits) within ten (10) business days
after receiving a loan request and the related materials normally required in
the Bank's commitment underwriting process, Bank shall be deemed to have waived
its option to finance pursuant to this Section 6.18. Land acquisition and/or
development loans furnished by the Bank pursuant to this Section 6.18 will
accrue interest at a per annum rate equal to one half percent (.50%) above the
Prime Rate and will require the Borrower to pay a loan fee equal to one percent
(1.00%) of the loan amount for a loan term not to exceed thirty six (36) months.
Revolving construction loans furnished by the Bank pursuant to this Paragraph
will accrue interest at a per annum rate equal to one half percent (.50%) above
the Prime Rate and will require the Borrower to pay an annual loan fee equal to
one half percent (0.50%) of the maximum outstanding balance of the revolving
construction line of credit. With respect to any revolving construction loan for
completion of dwelling units that closes concurrently with a land acquisition
and/or development loan secured by the same property, the annual fee described
above will not be imposed until the earlier of either (a) the first loan advance
thereunder or (b) nine (9) months after closing.
6.19 Most Favorable Financial Covenants. Borrower covenants that it
has informed Bank of its current financial covenants which it may have entered
into with any other lender, bank, or credit facility which may be more favorable
to such lender, bank, or credit facility, and Borrower agrees to inform Bank of
any financial covenants which it may enter into with any other lender, bank, or
credit facility which may be more favorable to such lender, bank, or credit
facility, and Borrower shall agree to execute documents or otherwise provide to
Bank the same financial covenants or the benefits of such financial covenants
arising after the date hereof.
6.20 Filings. Deliver to Bank a copy of any filings with any
governmental body, agency or authority which regulates Borrower's business other
than routine filings to maintain the good standing of Borrower, filings
regarding zoning issues, or filings in the ordinary course of Borrower's
Authorized Business.
18
ARTICLE 7
NEGATIVE COVENANTS
Until the Obligations have been repaid and satisfied in full and until
the Bank has no further obligation to make advances under the Loan, without the
prior written consent of Bank, the Borrower shall not:
7.1 Indebtedness. Except as permitted or contemplated by this
Agreement, create, incur, assume or suffer to exist any Debt or obligation for
money borrowed, or guarantee (as permitted in Section 7.2), or endorse, or
otherwise be or become contingently liable in connection with the obligations of
any Person (including, without limitation, any Affiliate), except:
(a) Indebtedness for taxes not at the time due and
payable or which are being actively contested in good faith by appropriate
proceedings and against which reserves deemed adequate by Bank have been
established by Borrower, but only if the non-payment of such taxes being
contested does not result in a Lien upon any property of Borrower that has
priority over the Lien held by Bank;
(b) Contingent liabilities arising out of the endorsement
of negotiable instruments in the ordinary course of collection or similar
transactions in the ordinary course of business;
(c) Accounts payable to trade creditors which are not
aged more than one hundred twenty (120) days from billing date and current
operating expenses (other than for borrowed money) which are not more than sixty
(60) days past due, in each case incurred in the ordinary course of business and
paid within such time period, unless the same are actively being contested in
good faith and by appropriate and lawful proceedings and Borrower shall have set
aside such reserves, if any, with respect thereto as have been recommended by
independent public accountants;
(d) Debt to third parties for purchase money borrowing
incurred in connection with the purchase of capital assets used in the business
of Borrower;
(e) Debt for money borrowed from the Bank;
(f) Debt of the Borrower existing on the date hereof and
not required by Bank to be prepaid as a condition to the Loan;
(g) Debt of the Borrower subordinated (on subordination
terms reasonably satisfactory to the Bank) to the Borrower's obligations to the
Bank;
(h) Debt of the Borrower to any subsidiary or of any
subsidiary to the Borrower or another subsidiary;
19
(i) Purchase money debt of the Borrower incurred in the
ordinary course of its or its Affiliates' business, provided that such seller is
not an Affiliate of the Borrower or lease of assets to be utilized in the
ordinary course of its business;
(j) As permitted in Section 7.2;
(k) Debt of Borrower or its subsidiaries to a lender
incurred in the ordinary course of and pursuant to reasonable requirements of
Borrowers' or its Subsidiaries' real estate business and upon customary, fair
and reasonable terms for such debt.
7.2 Guaranties. Assume, guaranty, endorse or otherwise be or
become directly or contingently responsible or liable, or permit any subsidiary
to assume, guaranty, endorse or otherwise be or become directly or contingently
responsible or liable (including, but not limited to, an agreement to purchase
any obligation, stock, assets, goods or services, or to supply or advance any
funds, assets, goods or services, or an agreement to maintain or cause such
entity or person to maintain a minimum working capital or net worth, or
otherwise to assure the creditors of any entity or person against loss) for
obligations of any entity or person, except
(a) debt of the Borrower or any of its Affiliates
(including ventures in which the Borrower or any of its affiliates are partners)
to third parties incurred in the ordinary course of and pursuant to the
reasonable requirements of the Borrower's or its Affiliates' (including ventures
for which Borrower or its Affiliates are partners) real estate related business
and upon customary, fair and reasonable terms for such credit;
(b) purchase money debt of the Borrower or any of its
Affiliates (including ventures in which the Borrower or any of its Affiliates
are partners) to a seller of real estate being acquired by the Borrower or its
Affiliates (including ventures in which the Borrower or any of its Affiliates
are partners) provided that such seller is not an Affiliate of the Borrower;
(c) any obligations of any of its subsidiaries to any
joint ventures in which such subsidiary is a partner provided that the other
partner(s) is not Affiliated with the Borrower or any of its subsidiaries except
as a partner in one or more joint ventures;
(d) guaranties by endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of
business; and
(e) any debt which is subordinated to the Loan.
7.3 Liens and Security Interests. Create, incur, assume, or suffer
to exist any mortgage, security deed, deed of trust, security interest, pledge,
encumbrance, Lien or charge of any kind (including charges on property purchased
under conditional sales or other title retention agreements) on any of its
property or assets, now owned or hereafter acquired, except for the following
(all of which are referred to herein as "Permitted Liens"):
(a) Liens for taxes not yet due or which are being
contested in good faith by appropriate proceeding and against which reserves
deemed adequate by Bank have been set up;
20
(b) Liens, charges and encumbrances incidental to the
conduct of its business or the ownership of its property and assets and created
by operation of law;
(c) Purchase money Liens and encumbrances created to
secure the indebtedness permitted by Section 7.1 and/or 7.2 hereof;
(d) Liens, charges and encumbrances in favor of the Bank;
and
(e) Liens, charges and encumbrances reflected on Schedule
7.3 to this Agreement.
7.4 Affiliate Transactions. Purchase, acquire or lease property
from, or sell, transfer or lease any inventory, materials, goods, equipment,
assets, rights or property to, any Affiliate of Borrower, except in the ordinary
course of Borrower's business and under terms and conditions which would apply
if disinterested parties were involved.
7.5 Merger, Consolidation, Dissolution and Asset Sales. Enter into
any plan of dissolution, liquidation, merger or consolidation or acquire all or
substantially all of the assets of any Person (other than where the Borrower is
the surviving entity and the other entity was primarily engaged in the land
acquisition, investments, lending, leasing, land development and/or homebuilding
businesses and/or other real estate related business); or sell, lease, or
otherwise dispose of any of its now owned or hereafter acquired assets
(including, without limitation, shares of stock and indebtedness of
subsidiaries, receivables and leasehold interests), except if disposed of in the
ordinary course of business as determined by Borrower.
7.6 INTENTIONALLY DELETED.
7.7 Loans and Partnerships with BankAtlantic, FSB. Make any loan
or advance to BankAtlantic, FSB or purchase or otherwise acquire any capital
stock, assets, obligations or other securities of, make any capital contribution
to, or otherwise invest in or acquire any interest in, BankAtlantic, FSB, or
participate as a partner or joint venturer with BankAtlantic, FSB.
7.8 INTENTIONALLY DELETED.
7.9 INTENTIONALLY DELETED.
7.10 INTENTIONALLY DELETED.
7.11 INTENTIONALLY DELETED.
7.12 INTENTIONALLY DELETED.
7.13 Adverse Transactions. Enter into any transaction, or permit
any Subsidiary to enter into any transaction, which materially and adversely
affects or may materially and adversely affect Borrower's ability to repay the
Obligations.
7.14 INTENTIONALLY DELETED.
21
7.15 INTENTIONALLY DELETED.
7.16 INTENTIONALLY DELETED.
7.17 Subordinated Debt. Make any payment (principal or interest)
with respect to Subordinated Debt, or with respect to any Debt that would be
Subordinated Debt but for the absence of a subordination agreement in effect
with respect thereto during any period an Event of Default remains in effect,
except that Borrower shall be entitled to make payments with respect to such
Debt during such time as no Event of Default exists hereunder.
ARTICLE 8
SECURITY INTEREST
8.1 Security Interest. As security for the payment of the Loans
including any extensions or renewals or changes in form of the Loans, and all
costs and expenses of collection thereof, including, without limitation,
attorneys' fees, Borrower will enter into a Pledge Agreement of even date
herewith, whereby Borrower shall assign to Bank and grant to Bank a security
interest in and Lien upon the Collateral.
ARTICLE 9
EVENTS OF DEFAULT; CERTAIN REMEDIES
9.1 Events of Default. The occurrence of any one or more of the
following events shall constitute an Event of Default hereunder:
(a) Payment Default. If Borrower shall fail to make any
payment of any installment of principal or interest on the Note(s) within ten
(10) days of when the same shall become due and payable, whether at stated
maturity, upon expiration of the Loan Period, by declaration, upon acceleration,
or otherwise; or
(b) Fees and Expenses. If Borrower shall fail to pay when
due any expense, fee or charge provided for in this Agreement and such failure
shall continue for a period of ten (10) days; or
(c) Other Defaults. If Borrower shall fail or neglect to
perform, keep or observe, or shall default with respect to, any covenant,
agreement or provision contained in this Agreement (other than a covenant,
agreement or provision a default in the performance of which is dealt with
specifically elsewhere in this Section 9.1 or in Section 6.17) which default is
not cured within twenty (20) days after written notice, provided if same cannot
reasonably be cured within twenty (20) days and Borrower commences to cure
within twenty (20) days and proceeds diligently to complete the cure, such cure
period shall be extended to the earlier of actual cure or ninety (90) calendar
days; or
(d) Representations False. If any warranty,
representation, or other statement made or furnished to Bank by or on behalf of
Borrower or in any of the Loan Documents proves to be false or misleading in any
material respect when made or furnished; or
22
(e) Financial Difficulties. If the Borrower shall be
involved in financial difficulties as evidenced:
(i) by its admission in writing of its inability
to pay its debts generally as they become due or of its ceasing to be Solvent;
(ii) by its filing a petition in bankruptcy or
for reorganization or for the adoption of an arrangement under the U.S.
Bankruptcy Code (as now or in the future amended) or any similar law regarding
debtors rights and remedies or an admission seeking the relief therein provided;
(iii) by its making a general assignment for the
benefit of its creditors;
(iv) by its consenting to the appointment of a
receiver for all or a substantial part of its property;
(v) by its being adjudicated a bankrupt;
(vi) by the entry of a court order appointing a
receiver or trustee for all or a substantial part of its property without its
consent, which order shall not be vacated, set aside or stayed within ninety
(90) days from the date of entry; or
(vii) by the assumption of custody or
sequestration by a court of competent jurisdiction of all or substantially all
of its property, which custody or sequestration shall not be suspended or
terminated within 60 days from its inception; or
(f) Other Documents and Other Obligations. If a default
or event of default or breach occurs under: (i) any Loan Document (other than
the breaches enumerated in other subsections of this Section 9.1), or under or
with respect to any of the Obligations; or (ii) under any other note, evidence
of indebtedness, loan agreement, security agreement, guaranty, pledge, mortgage,
assignment, security document or lease to which the Borrower is a party, and
such default or breach is not cured within 30 days after notice of such default
is given to Borrower or any longer applicable cure period; or
(g) Judgments. If a final judgment for the payment of
money in excess of $1,000,000 shall be rendered against the Borrower and the
same shall remain undischarged for a period of 30 days during which execution
shall not be effectively stayed, unless such judgment is fully covered by
collectible insurance; or
(h) Actions. If Borrower shall be criminally indicted or
convicted under any law that could lead to a forfeiture of any property of the
Borrower; or
(i) Adverse Changes. There shall occur any material
adverse change in the financial condition or business prospects of Borrower in
violation of Section 6.17; or
23
(j) Business Disruption; Condemnation. There shall occur
a cessation of a substantial part of the business of Borrower for a period in
excess of ten (10) days (whether consecutive or otherwise) in any 12 month
period, which significantly affects Borrower's capacity to continue its
business, on a profitable basis; or Borrower shall suffer the loss or revocation
of any license or permit now held or hereafter acquired by Borrower which is
necessary to the continued or lawful operation of its business; or Borrower
shall be enjoined, restrained or in any way prevented by court, governmental or
administrative order from conducting all or any material part of its business
affairs; or
(k) INTENTIONALLY DELETED.
(l) Change in Management. If neither Xxxx X. Xxxx nor
Xxxx Xxxxx shall, for any reason, be actively serving as officers of the
Borrower or shall for any reason devote less than a sufficient (in the
reasonable opinion of the Bank) amount of their business time to the business
and affairs of the Borrower and its Affiliates and suitable replacements (based
on business experience and background) acceptable to the Bank, in its reasonable
discretion, have not been retained within 30 days thereafter, the Loan shall be
deemed in default; or
(m) Subordination Agreements. If a breach or default
shall occur with respect to any subordination agreement executed by any creditor
of Borrower (including any Affiliate) who is required by this Agreement to
execute a subordination agreement, or if any said agreement shall otherwise
terminate or cease to have legal effect; or
(n) Sale of Borrower Stock. If BankAtlantic, FSB shall
make either (1) any sale, assignment, conveyance or transfer of any equity
interest in the Borrower so that less than eighty (80%) of the outstanding
shares of Borrower are owned by BankAtlantic, FSB and/or by a wholly owned
Subsidiary of BankAtlantic, FSB; or
(o) Sale of BankAtlantic, FSB: If BankAtlantic Bancorp
shall make any sale, assignment, conveyance or transfer of any equity interest
in BankAtlantic, FSB such that the outstanding shares of BankAtlantic, FSB are
not one hundred percent (100%) owned by BankAtlantic Bancorp., and/or by a
wholly owned Subsidiary of BankAtlantic Bancorp. Notwithstanding the foregoing,
the shares of BankAtlantic, FSB may be pledged to an institutional lender in
connection with any financing or refinancing thereof provided to enable
BankAtlantic Bancorp. to redeem and retire approximately 5,000,000 publicly held
outstanding shares of Class B common stock of BankAtlantic Bancorp. Any default
in connection with such financing that is not cured within the applicable cure
period of such loan, if any, will constitute an event of default in connection
with the Loan; or
(p) Second Loan Default. If a breach or default shall
occur with respect to any loan document (the "Second Loan Document") executed in
connection with the Second Loan; or
(q) St. Lucie West Development Corp. If a breach or
default shall occur with respect to any loan document executed in connection
with any loans to St. Lucie West Development Corp which are not cured within any
applicable cure period.
24
The Borrower agrees that default under any Loan Document or Second Loan
Document not cured within the applicable cure period shall constitute default
with respect to all Loan Documents and all Second Loan Documents and vice versa.
Any cure of an Event of Default under the Loan Documents or Second Loan
Documents shall cure the default under the Loan Documents and Second Loan
Documents and vice versa.
9.2 Remedies. Upon or at any time after the occurrence of any one
or more of the foregoing Events of Default until cured and the cure accepted by
Bank, Bank or the holder of the Note(s) may at its option (i) proceed to protect
and enforce its rights by suit in equity, action at law and/or the appropriate
proceeding either for specific performance of any covenant or condition
contained in the Note(s) or in any Loan Document, (ii) terminate the Loan Period
and/or (iii) declare the unpaid balance of the Loans and Note(s) together with
all accrued interest to be forthwith due and payable, and thereupon such balance
shall become so due and payable without further presentation, protest or further
demand or notice of any kind, all of which are hereby expressly waived.
The Borrower shall pay the Bank on demand any and all expenses,
including legal expenses and reasonable attorneys' fees, incurred or paid by the
Bank in protecting or enforcing the Loans and all other Obligations to and other
rights of the Bank hereunder to the extent Bank is the prevailing party.
The Bank shall not be liable for failure to enforce any contract rights
or for any action or omission on the part of the Bank, its officers, agents and
employees, except willful misconduct or gross negligence. No remedy herein
conferred upon, or reserved to, the Bank is intended to be exclusive of any
other remedy or remedies, including those of any note or other evidence of Debt
held by the Bank, and each and every remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing in
law or in equity. Exercise or omission to exercise any right of the Bank shall
not affect any subsequent right of the Bank to exercise the same.
Borrower waives any bond or security that might be required by any
court prior to allowing Bank to exercise any of Bank's remedies.
The Borrower agrees that the Bank may apply the net proceeds received
from the Collateral among the Loans and the Obligations toward satisfaction of
the same in its sole discretion. Any such proceeds remaining after satisfaction
in full of the Loans, the Obligations, and the other obligations and liabilities
of the Borrower to the Bank shall be distributed as required by Applicable Laws.
9.3 Right of Set-Off. Upon and after the occurrence of any Event
of Default and until such Event of Default is cured, Bank may, and is hereby
authorized by Borrower, at any time and from time to time, to the fullest extent
permitted by Applicable Laws, and without advance notice to Borrower (any such
notice being expressly waived by Borrower), set-off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and any other indebtedness at any time owing by Bank to, or for the credit
or the account of,
25
Borrower against any or all of the Loans and Obligations and other liabilities
and obligations of Borrower now or hereafter existing whether or not such
obligations have matured and irrespective of whether Bank has exercised any
other rights that it has or may have with respect to such Loans and Obligations
and other liabilities and obligations, including, without limitation, any
acceleration rights. The aforesaid right of set-off may be exercised by Bank
against Borrower or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of the creditors, receiver, or execution, judgment or
attachment creditor of Borrower, notwithstanding the fact that such right of
set-off shall not have been exercised by Bank prior to the making, filing or
issuance, or service upon Bank of, or of notice of, any such petition;
assignment for the benefit of creditors; appointment or application for the
appointment of a receiver; or issuance of execution, subpoena, order or warrant.
Bank agrees to notify Borrower after any such set-off and application, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of Bank under this Section are in addition
to the other rights and remedies (including, without limitation, other rights of
setoff) which Bank may have.
ARTICLE 10
INDEMNIFICATION
10.1 Indemnification. Borrower agrees to defend, indemnify and hold
harmless the Bank, its directors, officers, employees, accountants, attorneys,
and agents (the "Indemnitees"), from and against any and all claims, demands,
judgments, damages, actions, causes of action, injuries, orders, penalties,
costs and expenses (including attorneys' fees and costs of court) of any kind
whatsoever arising out of or relating to any breach or default by Borrower under
this Agreement or any Loan Document or the failure of Borrower to observe,
perform or discharge Borrower's duties hereunder or thereunder. Without limiting
the generality of the foregoing, Borrower's obligation to indemnify Bank shall
include indemnity from any and all claims, demands, judgments, damages, actions,
causes of action, injuries, orders, penalties, costs and expenses arising out of
or in connection with the activities of the Borrower, its predecessors in
interest, third parties who have trespassed on Borrower's property, or parties
in a contractual relationship with Borrower, whether or not occasioned wholly or
in part by any condition, accident or event caused by an act or omission of the
Indemnitees, which: (a) arise out of the actual, alleged or threatened
discharge, dispersal, release, storage, treatment, generation, disposal, or
escape of radioactive materials, radioactivity, pollutants or other toxic or
hazardous substances, including any solid, liquid, gaseous, or thermal irritant
or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals,
and waste (including materials to be recycled, reconditioned or reclaimed); or
(b) actually or allegedly arise out of the use, specification, or inclusion of
any product, material, or process containing chemicals or radioactive material,
the failure to detect the existence or proportion of chemicals or radioactive
material in the soil, air, surface water or groundwater, or the performance or
failure to perform the abatement of any pollution source or the replacement or
removal of any soil, water, surface water, or groundwater containing chemicals
or radioactive material; or (c) arises out of or relates to breach by Borrower
of any of the provisions of Section 5.15 hereof relating to Environmental
Regulations. In addition, Borrower will indemnify and hold Bank harmless from
and against any liability, claim, cost or expense incurred by Bank or imposed
against Bank for any stamp tax,
26
intangible tax, or other tax, fee or charge imposed by any governmental entity
arising out of or relating to the Note(s) or this Agreement or the transactions
anticipated herein.
ARTICLE 11
COSTS AND EXPENSES; MISCELLANEOUS
11.1 Costs of Preparation; Brokers Fees. Borrower shall bear all
expenses of the Bank in connection with the Loans and with the investigation,
review and approval of this transaction, the preparation of the Agreement and
the Loan Documents, and the issuance and delivery of the Note(s) to Bank and
also in connection with any amendment or modification thereto, and the
administration thereof, including, without limitation, (i) all reasonable legal
fees, expenses and disbursements and other actual third-party expense
reimbursements incurred or sustained by Bank in connection with this
transaction, (ii) all reasonable travel, appraisal, audit, search and filing
fees incurred or sustained by Bank in connection with this transaction
(excluding administration costs of the Loans); (iii) all recording and filing
fees, intangibles taxes, documentary and revenue stamps, other taxes or other
expenses and charges payable in connection with this Agreement, the Note(s) or
any Loan Document and (iv) all reasonable costs and expenses (including fees and
expenses of outside consultants) related to the transactions contemplated hereby
and thereby and/or periodic audits and appraisals performed by Bank. The
Borrower agrees to indemnify and save Bank harmless against all broker's and
finder's fees, if any.
11.2 Other Costs and Expenses. If, at any time or times hereafter,
whether before or after the occurrence of an Event of Default, the Bank employs
counsel to advise or provide other representation with respect to this Agreement
or any Loan Document, or to collect the balance of the Loans, or to take any
action in or with respect to any suit or proceeding relating to this Agreement
or any of the Loan Documents, or to protect, collect, or liquidate the
Collateral or to attempt to enforce any security interest or Lien granted to the
Bank by Borrower; then in any such events, all of the reasonable attorneys' fees
arising from such services, and any expenses, costs and charges relating thereto
to the extent Bank is the prevailing party, shall constitute additional
obligations of Borrower payable on demand of the Bank.
11.3 Legal Counsel. Borrower acknowledges and agrees that legal
counsel to Bank does not represent Borrower as Borrower's attorney, that
Borrower has retained (or has had an opportunity to retain) counsel of its own
choice and has not and will not rely upon any advice from Bank's counsel. In no
event shall Borrower's reimbursement of expenses pursuant to this Agreement
(even if effected by payment directly by Borrower to Bank's counsel) be deemed
to establish any attorney-client relationship between Borrower and Bank's
counsel.
11.4 No Waiver. No waiver of any Event of Default hereunder, and no
waiver of any default or Event of Default under any other Loan Document shall
extend to or shall affect any subsequent or other then existing default or shall
impair any rights, remedies or powers of Bank. No delay or omission of Bank or
any subsequent holder of the Note(s) to exercise any right, remedy, power or
privilege hereunder after the occurrence of such default or Event of Default
shall be construed as a waiver of any such default, or acquiescence therein.
27
11.5 Headings. Except for the definitions set forth in Section 1,
the headings of the articles, sections, paragraphs and subdivisions of this
Agreement are for convenience of reference only, are not to be considered a part
hereof, and shall not limit or otherwise affect any of the terms hereof.
11.6 Marshalling of Assets; Payments Set Aside. Bank shall be under
no obligation to xxxxxxxx any assets or securities in favor of Borrower or any
guarantor or any other Person or against or in payment of any or all of the
Obligations. To the extent that any sum credited against the Obligations is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then to the
extent of such recovery, the Obligations or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefor, shall be revived and
continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.
11.7 Survival of Covenants. All covenants, agreements,
representations and warranties made herein and in certificates or reports
delivered pursuant hereto shall be deemed to have been material and relied on by
Bank, notwithstanding any investigation made by or on behalf of Bank, and shall
survive the execution and delivery to Bank of any Note(s) or Loan Document.
11.8 Addresses. Any notice or demand which by any provision of this
Agreement is required or provided to be given shall be deemed to have been
sufficiently given or served for all purposes by (i) being delivered in person
to the party to whom the notice or demand is directed or (ii) by being sent as
first class mail, postage prepaid, in either event to the following address: If
to Borrower, 0000 Xxxx Xxxxxxx Xxxxxxxxx, Xxxx Xxxxxxxxxx, Xxxxxxx 00000, Attn.
Xxxx Xxxxxxx; or if any other address shall at any time be designated by
Borrower in writing to the holders of record of the Note(s) at the time of such
designation to such other address; and if to Bank, 200 Ohio Savings Plaza, 0000
Xxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000, Attention: Corporate Lending
Department, Xx. Xxxxx Xxxx; or if any other address shall at any time be
designated in writing to Borrower, to such other address. Notwithstanding the
foregoing, no notice shall be effective as to Bank until actually received by
Bank. Any written notice that is not sent in conformity with the provisions
hereof shall nevertheless be effective on the date that such notice is actually
received by the noticed party.
11.9 Venue and Jurisdiction. The parties agree that any legal
action brought by the Bank to collect the Loans or any Obligation or to assert
any claim by or against Borrower under any Loan Document, or any part thereof,
shall be brought in any court in the State of Florida having subject matter
jurisdiction, waives its right to object to any such action on grounds it is
brought in the improper venue, and irrevocably consents that any legal action or
proceeding against it under, arising out of, or in any manner relating to the
Loans, the Obligations, or any Loan Document shall be brought in the Circuit
Court of Palm Beach County, Florida or in the U.S. District Court for the
Southern District of Florida. Borrower, by the execution of this Agreement,
expressly and irrevocably assents and submits to the personal jurisdiction of
any such court in any such action or proceeding. Borrower consents to the
service of process relating to any such action or proceeding by mail to the
address set forth in this Agreement.
28
11.10 Continuing Obligation; Benefits. This Agreement, and each and
every provision hereof, is a continuing obligation and shall (i) be binding upon
the Borrower and the Bank, their successors and assigns, and (ii) inure to the
benefit of and be enforceable by the Borrower and Bank and their successors and
assigns; provided, that the Borrower may not assign all or any part of this
Agreement without the prior written consent of Bank, which consent may be
granted or withheld in the sole discretion of Bank.
11.11 Controlling Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida; provided,
however, that if any of the Collateral shall be located in any jurisdiction
other than Florida, the laws of such jurisdiction shall govern the method,
manner and procedure for foreclosure of Bank's lien upon such Collateral and the
enforcement of Bank's other remedies in respect of such Collateral to the extent
that the laws of such jurisdiction are different from or inconsistent with the
laws of Florida.
11.12 Standard of Review. Except as otherwise provided herein, any
document, writing or instrument required or permitted to be delivered to Bank
under this Agreement shall be deemed satisfactory only if approved by Bank in
the exercise of its reasonable discretion.
11.13 Participation. Borrower acknowledges that Bank may, at its
option, sell participation interests in the Loans to participating banks,
subject to complying with FIRPTA. The amounts of any such participation shall be
determined solely by the Bank. Borrower agrees with each present and future
participant in the Loans, the names and addresses of which will be furnished to
Borrower, that if an Event of Default should occur, each present and future
participant shall have all of the rights and remedies of Bank with respect to
any deposit due from any participant to Borrower. The execution by a participant
of a participation agreement with Bank, and the execution by Borrower of this
Agreement, regardless of the order of execution, shall evidence an agreement
between Borrower and said participant in accordance with the terms of this
Section. If Bank participates the Loan, the Borrower shall only be required to
make payment at one location and deal with a single servicer at any given time.
11.14 Miscellaneous. This Agreement and the instruments and
agreements referred to herein or called for hereby supersede and incorporate all
representations, promises, and statements, oral or written, made by the Bank in
connection with the Loans. This Agreement may not be varied, altered, or amended
except by a written instrument executed by an authorized officer of the Bank.
This Agreement may be executed in any number of counterparts, each of which,
when executed and delivered, shall be an original, but such counterparts shall
together constitute one and the same instrument. Any provision in this Agreement
which may be unenforceable or invalid under any law shall be ineffective to the
extent of such unenforceability or invalidity without affecting the
enforceability or validity of any other provisions hereof.
11.15 Joint and Several Liability. All obligations of each Person
named as Borrower shall be joint and several obligations of all such Persons.
Each representation, warranty and covenant shall be deemed true and/or complied
with, as the case may be, only (i) if true or complied with with respect to each
separate entity constituting a Borrower taken on its own without reference to
the other Borrower entities, and (ii) if true or complied with with respect to
all entities constituting Borrower taken as a whole.
29
11.16 General Waivers. To the fullest extent permitted by Applicable
Law, Borrower waives, except as otherwise provided in the Loan Documents (i)
presentment, demand and protest and notice of presentment, protest, default,
nonpayment, maturity, release, compromise, settlement, extension or renewal of
any or all commercial paper, accounts, contract rights, documents, instruments,
chattel paper and guaranties at any time held by Bank on which Borrower may in
any way be liable; (ii) any bond or security which might be required by any
court prior to allowing Bank to exercise any of Bank's remedies, (iii) the
benefit of all valuation, appraisement and exemption laws; (iv) any right
Borrower may have upon payment in full of the Obligations to require Bank to
terminate its security interest in the Collateral until the execution by
Borrower of an agreement indemnifying Bank from any loss or damage Bank may
incur as the result of dishonored checks or other items of payment received by
Bank from Borrower and applied to the Obligations; and (v) notice of Bank's
acceptance hereof or of any Loan Document.
11.17 Maximum Interest. Regardless of any provision contained in
this Agreement or any of the Loan Documents, in no event shall the aggregate of
all amounts that are contracted for, charged or collected pursuant to the terms
of this Agreement, the Note(s) or any of the Loan Documents, and that are deemed
interest under Applicable Law, exceed the Maximum Rate. No provision of this
Agreement or in any of the Loan Documents or the exercise by Bank of any right
hereunder or under any Loan Document or the prepayment by Borrower of any of the
Obligations or the occurrence of any contingency whatsoever, shall entitle Bank
to charge or receive, or to require Borrower to pay, interest or any amounts
deemed interest by Applicable Law (such amounts being referred to herein
collectively as "Interest") in excess of the Maximum Rate, and all provisions
hereof or in any Loan Document which may purport to require Borrower to pay
Interest exceeding the Maximum Rate shall be without binding force or effect to
the extent only of the excess of Interest over such Maximum Rate. Any Interest
charged or received in excess of the Maximum Rate ("Excess"), shall be
conclusively presumed to be the result of an accident and bona fide error, and
shall, to the extent received by Bank, at the option of Bank, either be applied
to reduce the principal amount of the Obligations or returned to Borrower. The
right to accelerate the maturity of any of the Obligations does not include the
right to accelerate unaccrued interest, and no such interest will be collected
by Bank. All monies paid to Bank hereunder or under any of the Loan Documents
shall be subject to any rebate of unearned interest as and to the extent
required by Applicable Law. By the execution of this Agreement, Borrower
covenants that (i) the credit or return of any Excess shall constitute the
acceptance by Borrower of such Excess, and (ii) Borrower shall not seek or
pursue any other remedy, legal or equitable, against Bank, based in whole or in
part upon contracting for, charging or receiving any Interest in excess of the
Maximum Rate. For the purpose of determining whether or not any Excess has been
contracted for, charged or received by Bank, all interest at any time contracted
for, charged or received from Borrower in connection with this Agreement shall,
to the extent permitted by Applicable Law, be amortized, prorated, allocated and
spread in equal parts throughout the full term of the Obligations. Borrower and
Bank shall, to the maximum extent permitted under Applicable Law (i)
characterize any non-principal payment as an expense, fee or premium rather than
as Interest and (ii) exclude voluntary prepayments and the effects thereof. The
provisions of this Section shall be deemed to be incorporated into the Note(s)
and each Loan Document (whether or not any provision of this Section is referred
to therein).
30
11.18 Waiver of Right to Trial by Jury. Borrower and Bank hereby
waive any right to trial by jury on any claim, counterclaim, setoff, demand,
action or cause of action (a) arising out of or in any way pertaining or
relating to this Agreement, the Note(s), the Loan Documents, or any other
instrument, document or agreement executed or delivered in connection with this
Agreement or (b) in any way connected with or pertaining or related to or
incidental to any dealings of the parties hereto with respect to this Agreement,
the Note(s), the Loan Documents, or any other instrument, document or agreement
executed or delivered in connection herewith or in connection with the
transactions related thereto or contemplated thereby or the exercise of either
party's rights and remedies thereunder, in all of the foregoing cases whether
now existing or hereafter arising, and whether sounding in contract, tort or
otherwise. Borrower and Bank agree that either or both of them may file a copy
of this paragraph with any court as written evidence of the knowing, voluntary
and bargained agreement between the parties irrevocably to waive trial by jury,
and that any dispute or controversy whatsoever between them shall instead be
tried in a court of competent jurisdiction by a judge sitting without a jury.
[SIGNATURES ON NEXT PAGE]
31
IN WITNESS WHEREOF, each of the Borrower and the Bank has caused this
instrument to be executed by its duly authorized officer and the Borrower has
caused its seal to be affixed as of the date first above written.
Attest: BORROWER:
XXXXXX CORPORATION,
a Florida corporation
By:
------------------------------------
Name:
------------------------------- ----------------------------------
Its:
-----------------------------------
[SEAL]
BANK:
OHIO SAVINGS BANK
By:
------------------------------------
Name:
----------------------------------
Its:
-----------------------------------
32
SCHEDULE 5.4
PENDING ACTIONS
None.
SCHEDULE 5.14
SUBSIDIARIES
SCHEDULE 5.19
PARTNERSHIPS
SCHEDULE 6.12
NON-SUBORDINATED LOANS
None.
SCHEDULE 7.3
PERMITTED LIENS
Any and all liens, charges and encumbrances associated with the surety bonds
disclosed on Schedule 5.19 hereto.
EXHIBIT "G"
COMPLIANCE CERTIFICATE
Ohio Savings Bank
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Corporate Lending Department
Xx. Xxxxx Xxxx
Date of Report: , 2000
------------------
For Month or Quarter Ended: , 2000
------------------
The undersigned officer(s) of Xxxxxx Corporation, a Florida corporation hereby
certify to you as follows:
(1) We have reviewed the provisions of the Loan Agreement between
Borrower and you, dated as of September _____, 2000 (the "Loan Agreement"), and
we have caused to be made under our supervision a review of the activities of
Borrower during the above referenced period with a view toward determining
whether Borrower has kept, observed, performed, and fulfilled all of its
obligations under the Loan Agreement. Capitalized terms used herein but not
otherwise defined herein shall have the meanings set forth in the Loan
Agreement. To the best of our knowledge, Borrower has kept, observed, performed,
and fulfilled each and every undertaking contained in the Loan Agreement and is
not at this time in default in the observance or performance of any of the terms
or conditions of the Loan Agreement, and no Event of Default has occurred and is
continuing, and no event has occurred and is continuing that, with the giving of
notice or the passage of time or both, would be an Event of Default, except as
follows:
-----------------------------------------------------------------
--------------------------------------------------------------------------------
------------------------------------------------------. Without limiting the
generality of the foregoing, Borrower is Solvent as of the date hereof.
(2) We further certify to you that no material adverse change has
occurred in either the financial condition or the business of Borrower since the
date of the Loan Agreement and that all representations and warranties set forth
within the Loan Agreement are true as of the date hereof, except as follows:
-------------------
(3) During the period noted above, Borrower has not changed its
name, its place of business, principal executive office, or has been surviving
corporation in a merger, nor has it changed the places where the Collateral is
located, except as follows:
----------------------.
Executed this day of , 2000.
------ ------------
----------------------------------------
Print Name:
-----------------------------
----------------------------------------
Print Name:
-----------------------------
ON BEHALF OF XXXXXX CORPORATION,
a Florida corporation
