Document:

Exhibit 10.15

 

(Page 1 of 13)

 

E28

 

	
 
    	
PNC
    
	
 
    	
EQUIPMENT FINANCE
    

 

Fixed Rate and

Fixed Rate Period Agreement

 

PNC EQUIPMENT FINANCE, LLC

995 Dalton Ave.

Cincinnati, OH 45203

 

Re: Loan and Security Agreement dated February 3, 2011 Advance Number 152620002

 

Ladies and Gentlemen:

 

This confirms our agreement to the following:

 

Capitalized terms used in this Fixed Rate and Fixed Rate Period Agreement shall have the meanings ascribed to such terms in the Loan and Security Agreement and the Requests for Staged Advance delivered thereunder.

 

I . This Fixed Rate Period and Fixed Rate Period Agreement relates to the following Requests for Staged Advance:

 

	
Advance Number
    	
 
    	
Date of Advance
    	
 
    	
Amount of Advance
    	
 
    
	
152620000
    	
 
    	
11/9/11
    	
 
    	
$
    	
473,395.00
    	
 
    
	
152620000
    	
 
    	
11/16/11
    	
 
    	
$
    	
54,960.00
    	
 
    
	
152620000
    	
 
    	
11/23/11
    	
 
    	
$
    	
1,358,015.00
    	
 
    

 

TOTAL PRINCIPAL AMOUNT: $1,886,370.00

 

2.         The Conversion Date is November 29 , 2011

 

3.         The Fixed Rate Period of 60 months begins on the Conversion Date and ends on the Maturity Date.

 

4.         During the Fixed Rate Period, a Fixed Rate of 4.04% per annum applies to the total principal amount identified in item I above.

 

5.         The total principal amount identified in item 1 above shall constitute a single term loan, amortizing over the Fixed Rate Period. Borrower agrees to repay the Loan in 59 equal monthly installments of principal together with interest in the amount of $27,443.97, as billed monthly by Lender at the rate set forth in paragraph 2 above, each such payment due and payable on the 29th day of the month with a final payment of the amount of $513,938.79 and all other sums due hereunder shall be due and payable on November 29, 2016

 

 

(Page 2 of 13)

 

WITNESS the due execution hereof as a document under seal, with the intent to be legally bound hereby, this 29  day of November ,2011.

 

 

	
 
    	
AMERIQUEST   TRANSPORTATION SERVICES, INC.,
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ M. Joyce
    
	
 
    	
 
    	
 
    
	
 
    	
Name: 
    	
M. Joyce
    
	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
CFO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AMERIQUEST   LEASING & MAINTENANCE, INC,
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ M. Joyce
    
	
 
    	
 
    	
 
    
	
 
    	
Name: 
    	
M. Joyce
    
	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
CFO
    

 

Fixed Rate Agreement Rev. S/03

 

 

(Page 3 of 13)

 

E28

 

	
 
    	
PNC
    
	
 
    	
EQIIIPMENT FINANCE
    

 

Request For

 

Staged Advance

 

	
Advance Number:   152620002
    	
Loan and Security   Agreement Number: 6225
    
	
 
    	
 
    
	
Date of Request: 11/9,   2011
    	
Date of Loan and   Security Agreement: February 3, 2011
    

 

AMERIQUEST TRANSPORTATION SERVICES, INC., AMERIQUEST LEASING & MAINTENANCE, INC (hereiafter referred to individually and collectively as “Borrower’) hereby requests an advance from PNC EQUIPMENT FINANCE, LLC (“Lender’) in the amount of $413,395.00 (“Loan”) under that certain Loan and Security Agreement between Lender and Borrower dated February 3, 2011 (as amended, restated or replaced from time to time, the “Agreement”). Any capitalized term used without definition in this Request For Advance shall have the same meaning given to such term in the Agreement. To induce Lender to make such advance, the Borrower hereby represents, covenants, warrants and agrees as follows:

 

1.                                 COLLATERAL: The requested Loan is for the purpose of acquiring the following-described property: See Exhibit “A” attached hereto and made a part hereof - location: 6195 Crooked Creek Road, Norcross, CA 30092 (the “Collateral”), Borrower has attached hereto a copy of the purchase invoice for the Collateral [and the certificate of title related thereto]. Borrower hereby grants the Lender a security interest in the Collateral, which security interest will be governed by the terms and conditions of the Agreement. Borrower agrees to promptly execute and deliver to Lender such other instruments or documents as may be required by Lender to perfect its security interest in the Collateral, including, delivery to Lender of the original titles to vehicles (if any) relating to the Collateral.

 

2.                                 BORROWING PERIOD AND CONVERSION DATE: During the period prior to and including the Conversion Date, the Borrower may borrow hereunder and under other Requests For Staged Advance submitted pursuant to the Agreement (but may not repay and reborrow), subject to the terms and conditions of this Request For Staged Advance and the Agreement. On the Conversion Date, the then-outstanding principal amount of advances hereunder and under all other Requests for Staged Advance submitted pursuant to the Agreement shall convert to a single amortizing term loan payable as set forth below. The “Conversion Date” shall mean the earliest to occur of (a) the date when the Lender has made advances under the Agreement which, in the aggregate, equal $2,950,000.00, (b) the date when the Lender receives written notice from the Borrower (which notice shall be irrevocable) informing the Lender that the Borrower does not intend to request further advances under the Agreement and acknowledging that the Lender shall have no obligation to make further advances under the Agreement, or (c) January 31, 2012, or such later date as may be designated by the Lender by written notice from the Lender to the Borrower_

 

3.                                 INTEREST: Prior to the Conversion Date, the Loan shall accrue interest during each Interest Period at a rate per annum (computed on the basis of actual days elapsed within a year consisting of 360 days) equal to the sum of (A) L113011.. for such Interest Period plus (B) two and one half (2.50 %) (the “Applicable LIBOR”). The Applicable LIBOR shall remain in effect until adjusted by Lender for each Interest Period, without notice to Borrower. For the purpose hereof; the following terms shall have the following meanings:

 

“Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed for business in Pittsburgh, Pennsylvania.

 

“Interest Period” shall mean, initially, a period of thirty days beginning on the date of the Loan’s disbursement, and each succeeding thirty-day period thereafter.

 

“LIBOR” shall mean, For any Interest Period, the interest rate per annum determined by Lender by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/1000th of 1%) (i) the Published Rate for such Interest Period by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage.

 

“LIBOR Reserve Percentage” shall mean, for any date, the maximum effective percentage in effect on such date as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including, without limitation, supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities”).

 

Request for Staged Advance (Rev. 5103

 

(Page 4 of 13)

 

“Published Rate” shall mean the rate of interest published on the second Business Day prior to the first day of any Interest Period in The Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then such rate published therein on the most recent Business Day prior to such date; provided, that if no such rate of interest is published therein on such date for longer than 30 consecutive days, then the Published Rate shall be the eurodollar rate for a one month period, as published in another publication determined by Lender).

 

LIBOR shall be adjusted on the effective date of any change in the LIBOR Reserve Percentage as of such effective date. Lender shall give prompt notice to Borrower of LIBOR as so adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

 

If Lender determines (which determination shall be final and conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable amounts) are not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining LIBOR, then Lender shall give notice thereof to Borrower. Thereafter, until Lender notifies Borrower that the circumstances giving rise to such suspension no longer exist, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shall be suspended, and (b) the manner for calculating interest hereunder shall be converted an the first Business Day of the next Interest Period to a rate per annum (calculated on the basis of actual days elapsed within a year consisting of 360 days) ascertained by Lender in a manner designed to approximate the usage of the Applicable LIBOR, using a comparable index selected by Lender (the “Comparable Index”).

 

In addition, if, after the date of this Request for Advance, Lender shall determine (which determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof; or compliance by Lender with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for Lender to calculate interest hereunder based on the Applicable LIBOR, Lender shall so notify Borrower. Upon receipt of such notice, until Lender notifies Borrower that the circumstances giving rise in such determination no longer apply, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shall be suspended, and (b) the manner for calculating interest hereunder shall be converted to the Comparable Index either (i) on the first Business Day of the next Interest Period, if Lender may lawfully continue to calculate interest hereunder using the Applicable LIBOR to such day, or (ii) immediately if Lender may not lawfully continue to calculate interest hereunder using the Applicable LIBOR.

 

3.                                 PAYMENT TERMS: Prior to the Conversion Date, interest only shall be due and payable monthly, commencing on September 28, 2011, and continuing on the 28th day of each month thereafter until the Conversion Date, when all accrued interest shall be due and payable. From and after the Conversion Date, payments of principal hereunder (and under all related Requests For Staged Advance under the Agreement) shall be due and payable monthly in advance in sixty (60) equal consecutive installments, each of which shall be in an amount determined by dividing the outstanding principal amount hereunder (and under all related Requests For Staged Advance under the Agreement) on the Conversion Date by sixty (60), commencing on the Conversion Date, and continuing on the same day of each month thereafter until the date (the “Maturity Date”) which is one month prior to the fifth anniversary of the Conversion Date, at which time a final installment shall he payable in an amount equal to the remaining outstanding principal balance hereunder (and under all related Requests For Staged Advance under the Agreement). Interest shall be payable at the same times as the principal payments. Any outstanding principal and accrued interest shall be due and payable in full on the Maturity Date.

 

4.                                 PREPAYMENT: So long as no Event of Default under the Agreement has occurred and is continuing, Borrower may prepay all, but not less than all, of the outstanding principal of the Loan prior to the maturity date set forth in the preceding paragraph, provided that, if a Fixed Rate is in effect, then upon such prepayment Borrower shall also pay to Lender a prepayment charge equal to four (4%) percent of the remaining principal balance of the Loan if such prepayment is made during the first (1st) year of the Fixed Rate Period set forth in the preceding paragraph, three (3%) percent of the remaining principal balance of the Loan if during the second (2nd) year of the Fixed Rate Period, two (2%) percent of the remaining principal balance of the Loan if during the third (3rd) year and thereafter of the Fixed Rate Period, one (1%) percent of the remaining principal balance of the Loan if during the fouth (41h) year and thereafter of the Fixed Rate Period. All

 

Request for Staged Advance (Rev. 8/1B)

 

2

 

(Page 5 of 13)

 

prepayments of principal shall be accompanied by the payment of accrued interest on the amount of such prepayment to the date thereof.

 

5.                                 INSURANCE: In addition to the requirements contained in the Agreement, the following insurance requirements shall apply: (a) liability coverage: (i) general liability including/comprehensive form: premises/operations; products/completed operations; contractual liability; independent contractors; broad form property damage; personal injury; and collapse hazard; (ii) bodily injury and property damage combined single limit per occurrence: $5,000,000; and (b) property coverage: all risk of physical loss; equipment must be insured for at least the total original cost,

 

6.                                 REPRESENTATIONS AND WARRANTIES: Borrower hereby (a) reaffirms the representations and warranties made by Borrower to the Lender in the Agreement and the other Loan Documents; (b) represents that Borrower is in compliance with all of the terms and conditions of the Loan Documents; and (c) represents that no Event of Default or event which with the passage of time, the giving of notice, or both, would constitute an Event of Default, has occurred and is continuing.

 

WITNESS the due execution hereof with the intent to be legally bound.

 

	
Accepted By: PNC   EQUIPMENT FINANCE, LLC
    	
AMERIQUEST   TRANSPORTATION
    
	
Lender SERVICES   , Inc.
    	
Borrow
    
	
 
    	
 
    
	
By: 
    	
/s/ Therese M. Woodman
    	
 
    	
By: 
    	
/s/ Mark Joyce
    
	
 
    	
 
    
	
Title: 
    	
Assistant Vice   President
    	
 
    	
Title: 
    	
CFO
    
	
 
    	
 
    
	
 
    	
AMERIQUEST   LEASING & MAINTENANCE,INC. Borrower
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mark Joyce
    
	
 
    	
 
    
	
 
    	
Title: 
    	
CFO
    

 

Request for Staged Advance (Rev. 8/03)

 

3

 

Ameriquest Transportation Services, Inc. & Ameriquest Leasing & Maintenance, Inc.

 

Lease No. 152620002

Exhibit “A”

 

	
Description
    	
 
    	
VIN NO.
    	
 
    	
 
    	
Asset Cost
    	
 
    	
 
    
	
Volvo VNL64T670
    	
 
    	
4V4NC9EH3CN561 191
    	
 
    	
 
    	
$
    	
94,679.00
    	
 
    	
 
    
	
Volvo VNL64T670
    	
 
    	
4V4NC9EH5CN561189
    	
 
    	
 
    	
$
    	
94,679,00
    	
 
    	
 
    
	
Volvo VNL64T670
    	
 
    	
4V4NC9EH2CN561179
    	
 
    	
 
    	
$
    	
94,679,00
    	
 
    	
 
    
	
Volvo VNL64T670
    	
 
    	
4V4NC9EH9CN561177
    	
 
    	
 
    	
$
    	
94,679.00
    	
 
    	
 
    
	
Volvo VNL64T670
    	
 
    	
4V4NC9EH5CN561175
    	
 
    	
 
    	
$
    	
94,679.00
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
—
    	
 
    	
 
    
	
Interim   001 . -
    	
 
    	
 
    	
 
    	
· ·
    	
$
    	
473,365.00
    	
 ··
    	
 
    

 

 

(Page 7 of 13)

 

	
 
    	
E28
    

 

	
 
    	
PNC
    
	
 
    	
EQUIPMENT’ FINANCE
    

 

Request For

Staged Advance

 

	
Advance Number:   152620002;
    	
Loan and Security   Agreement Number: 6225
    
	
Date of Request:   November 16 , 2011
    	
Date of Loan and   Security Agreement: February 3, 2011
    

 

AMERIQUEST TRANSPORTATION SERVICES, INC., AMERIQUEST LEASING & MAINTENANCE, INC (hereinafter referred to individually and collectively as “Borrower”) hereby requests an advance from PNC EQUIPMENT FINANCE, LLC (“Lender”) in the amount of $54,960.00 (“Loan”) under that certain Loan and Security Agreement between Lender and Borrower dated February 3, 2011 (as amended, restated or replaced from time to time, the “Agreement”). Any capitalized term used without definition in this Request For Advance shall have the same meaning given to such term in the Agreement. To induce Lender to make such advance, the Borrower hereby represents, covenants, warrants and agrees as follows:

 

1.                                 COLLATERAL: The requested Loan is for the purpose of acquiring the following-described property: See Exhibit “A” attached hereto and made a part hereof location: 6195 Crooked Creek Road, Norcross, GA 30092 (the “Collateral”), Borrower has attached hereto a copy of the purchase invoice for the Collateral land the certificate of title related thereto]. Borrower hereby grants the Lender a security interest in the Collateral, which security interest will be governed by the terms and conditions of the Agreement. Borrower agrees to promptly execute and deliver to Lender such other instruments or documents as may be required by Lender to perfect its security interest in the Collateral, including, delivery to Lender of the original titles to vehicles (if any) relating to the Collateral,

 

2.                                 BORROWING PERIOD AND CONVERSION DATE: During the period prior to and including the Conversion Date, the Borrower may borrow hereunder and under other Requests For Staged Advance submitted pursuant to the Agreement (but may not repay and reborrow), subject to the terms and conditions of this Request For Staged Advance and the Agreement. On the Conversion Date, the then-outstanding principal amount of advances hereunder and under all other Requests for Staged Advance submitted pursuant to the Agreement shall convert to a single amortizing term loan payable as set forth below. The “Conversion Date’ shall mean the earliest to occur of (a) the date when the Lender has made advances under the Agreement which, in the aggregate, equal $2,950,000.00, (b) the date when the Lender receives written notice from the Borrower (which notice shall be irrevocable) informing the Lender that the Borrower does not intend to request further advances under the ,Agreement and acknowledging that the Lender shall have no obligation to make further advances under the Agreement, or (c) January 31, 2012, or such later date as may be designated by the Lender by written notice from the Lender to the Borrower.

 

3.                                 INTEREST: Prior to the Conversion Date, the Loan shall accrue interest during each Interest Period at a rate per annum (computed on the basis of actual days elapsed within a year consisting of 360 days) equal to the sum of (A) LIBOR for such interest Period plus (B) two and one half (2.50%) (the “Applicable LIBOR”). The Applicable LIBOR shall remain in effect until adjusted by Lender for each Interest Period, without notice to Borrower. For the purpose hereof, the following terms shall have the following meanings:

 

“Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed for business in Pittsburgh, Pennsylvania.

 

“Interest Period” shall mean, initially, a period of thirty days beginning on the date of the Loan’s disbursement, and each succeeding thirty-day period thereafter.

 

“LIBOR” shall mean, for any Interest Period, the interest rate per annum determined by Lender by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/1000th of 1%) (1) the Published Rate for such Interest Period by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage.

 

“LIBOR Reserve Percentage” shall mean, for any date, the maximum effective percentage in effect on such date as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including, without limitation, supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities”).

 

Request for Staged Advance (Rev. 8/03

 

 

(Page B. of 13)

 

“Published Rate” shall mean the rate of interest published on the second Business Day prior to the first day of any Interest Period in The Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then such rate published therein on the most recent Business Day prior to such date; provided, that if no such rate of interest is published therein on such date for longer than 30 consecutive days, then the Published Rate shall be the eurodollar rate for a one month period, as published in another publication determined by Lender).

 

LIBOR shall be adjusted on the effective date of any change in the LIBOR Reserve Percentage as of such effective date, Lender shall give prompt notice to Borrower of LIBOR as so adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

 

If Lender determines (which determination shall be final and conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable amounts) are not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining LIBOR, then Lender shall give notice thereof to Borrower. Thereafter, until Lender notifies Borrower that the circumstances giving rise to such suspension no longer exist, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shall be suspended, and (b) the manner for calculating interest hereunder shall be converted on the first Business Day of the next Interest Period to a rate per annum (calculated on the basis of actual days elapsed within a year consisting of 360 days) ascertained by Lender in a manner designed to approximate the usage of the Applicable LIBOR, using a comparable index selected by Lender (the “Comparable Index”).

 

In addition, if, after the date of this Request for Advance, Lender shall determine (which determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof; or compliance by Lender with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for Lender to calculate interest hereunder based on the Applicable LIBOR, Lender shall so notify Borrower. Upon receipt of such notice, until Lender notifies Borrower that the circumstances giving rise to such determination no longer apply, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shall be suspended, and (b) the manner for calculating interest hereunder shall be converted to the Comparable Index either (i) on the first Business Day of the next Interest Period, if Lender may lawfully continue to calculate interest hereunder using the Applicable LIBOR to such day, or (ii) immediately if Lender may not lawfully continue to calculate interest hereunder using the Applicable L1130R.

 

3.                            PAYMENT’ TERMS: Prior to the Conversion Date, interest only shall be due and payable monthly, commencing on September 28, 2011, and continuing on the 28th day of each month thereafter until the Conversion Date, when all accrued interest shall be due and payable. From and after the Conversion Date, payments of principal hereunder (and under all related Requests For Staged Advance under the Agreement) shall be due and payable monthly in advance in sixty (60) equal consecutive installments, each of which shall be in an amount determined by dividing the outstanding principal amount hereunder (and under all related Requests For Staged Advance under the Agreement) on the Conversion Date by sixty (60), commencing on the Conversion Date, and continuing on the same day of each month thereafter until the date (the “Maturity Date”) which is one month prior to the fifth anniversary of the Conversion Date, at which time a final installment shall be payable in an amount equal to the remaining outstanding principal balance hereunder (and under all related Requests For Staged Advance under the Agreement). Interest shall be payable at the same times as the principal payments. Any outstanding principal and accrued interest shall be due and payable in full on the Maturity Date.

 

4.                            PREPAYMENT: So long as no Event of Default under the Agreement has occurred and is continuing, Borrower may prepay all, but not less than all, of the outstanding principal of the Loan prior to the maturity date set forth in the preceding paragraph, provided that, if a Fixed Rate is in effect, then upon such prepayment Borrower shall also pay to Lender a prepayment charge equal to four (4%) percent of the remaining principal balance of the Loan if such prepayment is made during the first (1st) year of the Fixed Rate Period set forth in the preceding paragraph, three (3%) percent of the remaining principal balance of the Loan if during the second (2nd) year of the Fixed Rate Period, two (2%) percent of the remaining principal balance of the Loan if during the third (3rd) year and thereafter of the Fixed Rate Period, one (1%) percent of the retraining principal balance of the Loan if during the font (4th) year and thereafter of the Fixed Rate Period. All

 

2

 

(Page 9 of 13)

 

prepayments of principal shall be accompanied by the payment of accrued interest on the amount of such prepayment to the date thereof. -

 

5.                                 INSURANCE: In addition to the requirements contained in the Agreement, the following insurance requirements shall apply: (a) liability coverage: (i) general liability including/comprehensive form: premises/operations; products/completed operations; contractual liability; independent contractors; broad form property damage; personal injury; and collapse hazard; (ii) bodily injury and property damage combined single limit per occurrence: $5,000,000; and (b) property coverage: all risk of physical loss; equipment must be insured for at least the total original cost.

 

6.                                 REPRESENTATIONS AND WARRANTIES: Borrower hereby (a) reaffirms the representations and warranties made by Borrower to the Lender in the Agreement and the other Loan Documents; (b) represents that Borrower is in compliance with all of the terms and conditions of the Loan Documents; and (c) represents that no Event of Default or event which with the passage of time, the giving of notice, or both, would constitute an Event of Default, has occurred and is continuing.

 

WITNESS the due execution hereof with the intent to be legally bound.

 

	
Accepted By: PNC   EQUIPMENT FINANCE, LLC
    	
AMERIQUEST   TRANSPORTATION
    
	
Lender SERVICES   , Inc.
    	
 
    	
Borrow
    
	
 
    	
 
    	
 
    
	
By:
    	
 /s/ Therese M. Woodman
    	
 
    	
By:
    	
 /s/ Mark Joyce
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Assistant Vice   President
    	
 
    	
Title: 
    	
CFO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
AMERIQUEST   LEASING &
   MAINTENANCE,INC. Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Mark Joyce
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 CFO
    

 

3

 

(Page 10 of 13)

 

1RI

 

	
 
    	
PNC
    
	
 
    	
EQUIPMENT   FINANCE
    

 

Request For

 

Staged Advance

 

	
Advance Number:   152620002
    	
Loan and Security   Agreement Number: 6225
    
	
 
    	
 
    
	
Date of Request:   November 23, 2011
    	
Date of Loan and   Security Agreement: February 3, 2011
    

 

AMERIQUEST TRANSPORTATION SERVICES, INC., AMERIQUEST LEASING & MAINTENANCE, INC (hereiafter referred to individually and collectively as “Borrower”) hereby requests an advance from PNC EQUIPMENT FINANCE, LLC (“Lender”) in the amount of $1,358,015.00 (“Loan”) under that certain Loan and Security Agreement between Lender and Borrower dated February 3, 2011 (as amended, restated or replaced from time to time, the “Agreement”). Any capitalized term used without definition in this Request For Advance shall have the same meaning given to such term in the Agreement. To induce Lender to make such advance, the Borrower hereby represents, covenants, warrants and agrees as follows:

 

COLLATERAL: The requested Loan is for the purpose of acquiring the following-described property: See Exhibit “A” attached hereto and made a part hereof - location: 6195 Crooked Creek Road, Norcross, GA 30092 (the “Collateral”). Borrower has attached hereto a copy of the purchase invoice for the Collateral [and the certificate of title related thereto]. Borrower hereby grants the Lender a security interest in the Collateral, which security interest will be governed by the terms and conditions of the Agreement. Borrower agrees to promptly execute and deliver to Lender such other instruments or documents as may be required by Lender to perfect its security interest in the Collateral, including, delivery to Lender of the original titles to vehicles (if any) relating to the Collateral.

 

2.                                 BORROWING PERIOD AND CONVERSION DATE: During the period prior to and including the Conversion Date, the Borrower may borrow hereunder and under other Requests For Staged Advance submitted pursuant to the Agreement (but may not repay and reborrow), subject to the terms and conditions of this Request For Staged Advance and the Agreement. On the Conversion Date, the then-outstanding principal amount of advances hereunder and under all other Requests for Staged Advance submitted pursuant to the Agreement shall convert to a single amortizing term loan payable as set forth below. The “Conversion Date” shall mean the earliest to occur of (a) the date when the Lender has made advances under the Agreement which, in the aggregate, equal $2,950,000.00, (b) the date when the Lender receives written notice from the Borrower (which notice shall be irrevocable) informing the Lender that the Borrower does not intend to request further advances under the Agreement and acknowledging that the Lender shall have no obligation to make further advances under the Agreement, or (c) January 31, 2012, or such later date as may be designated by the Lender by written notice from the Lender to the Borrower.

 

3.                                 INTEREST: Prior to the Conversion Date, the Loan shall accrue interest during each Interest Period at a rate per annum (computed on the basis of actual days elapsed within a year consisting of 360 days) equal to the sum of (A) LIBOR for such Interest Period plus (B) two and one half (2.50 %) (the “Applicable LIBOR”). The Applicable LIBOR shall remain in effect until adjusted by Lender for each Interest Period, without notice to Borrower, For the purpose hereof, the following terms shall have the following meanings:

 

“Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed for business in Pittsburgh, Pennsylvania.

 

“Interest Period” shall mean, initially, a period of thirty days beginning on the date of the Loan’s disbursement, and each succeeding thirty-day period thereafter.

 

“LIBOR” shall mean, for any Interest Period, the interest rate per annum determined by Lender by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100001 of 1%) (i) the Published Rate for such Interest Period by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage.

 

“LIBOR Reserve Percentage” shall mean, for any date, the maximum effective percentage in effect on such date as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including, without limitation, supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities”).

 

Request for Staged Advance (Rev. 8103

 

 

(Page 11 of 13)

 

“Published Rate” shall mean the rate of interest published on the second Business Day prior to the first day of any Interest Period in The Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then such rate published therein on the most recent Business Day prior to such date; provided, that if no such rate of interest is published therein on such date for longer than 30 consecutive days, then the Published Rate shall be the eurodollar rate for a one month period, as published in another publication determined by Lender).

 

LIBOR shall be adjusted on the effective date of any Change in the LIBOR Reserve Percentage as of such effective date. Lender shall give prompt notice to Borrower of LIBOR as so adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

 

If Lender determines (which determination shall be final and conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable amounts) are not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining LIBOR, then Lender shall give notice thereof to Borrower. Thereafter, until Lender notifies Borrower that the circumstances giving rise to such suspension no longer exist, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shalt be suspended, and (b) the manner for calculating interest hereunder shall be converted on the first Business Day of the next Interest Period to a rate per annum (calculated on the basis of actual days elapsed within a year consisting of 360 days) ascertained by Lender in a manner designed to approximate the usage of the Applicable LIBOR, using a comparable index selected by Lender (the “Com parable Index”).

 

In addition, if, after the date of this Request for Advance, Lender shall determine (which determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by Lender with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for Lender to calculate interest hereunder based on the Applicable LIBOR, Lender shall so notify Borrower. Upon receipt of such notice, until Lender notifies Borrower that the circumstances giving rise to such determination no longer apply, (a) the availability of the Applicable LIBOR for calculation of interest hereunder shall be suspended, and (b) the manner for calculating interest hereunder shall be converted to the Comparable Index either (i) on the first Business Day of the next Interest Period, if Lender may lawfully continue to calculate interest hereunder using the Applicable LIBOR to such day, or (ii) immediately if Lender may not lawfully continue to calculate interest hereunder using the Applicable LIBOR.

 

3.                                 PAYMENT TE,RMS: Prior to the Conversion Date, interest only shall be due and payable monthly, commencing on September 28, 2011, and continuing on the 28th day of each month thereafter until the Conversion Date, when all accrued interest shall be due and payable. From and after the Conversion Date, payments of principal hereunder (and under all related Requests For Staged Advance under the Agreement) shall be due and payable monthly in advance in sixty (60) equal consecutive installments, each of which shall be in an amount determined by dividing the outstanding principal amount hereunder (and under all related Requests For Staged Advance under the Agreement) on the Conversion Date by sixty (60), commencing on the Conversion Date, and continuing on the same day of each month thereafter until the date (the “Maturity Date”) which is one month prior to the fifth anniversary of the Conversion Date, at which time a final installment shall be payable in an amount equal to the remaining outstanding principal balance hereunder (and under all related Requests For Staged Advance under the Agreement). Interest shall be payable at the same times as the principal payments. Any outstanding principal and accrued interest shall be due and payable in full on the Maturity Date.

 

4.                                 PREPAYMENT: So long as no Event of Default under the Agreement has occurred and is continuing, Borrower may prepay all, but not less than all, of the outstanding principal of the Loan prior to the maturity date set forth in the preceding paragraph, provided that, if a Fixed Rate is in effect, then upon such prepayment Borrower shall also pay to Lender a prepayment charge equal to four (4%) percent of the remaining principal balance of the Loan if such prepayment is made during the first (1st) year of the Fixed Rate Period set forth in the preceding paragraph, three (3%) percent of the remaining principal balance of the Loan if during the second (2nd) year of the Fixed Rate Period, two (2%) percent of the remaining principal balance of the Loan if during the third (3rd) year and thereafter of the Fixed Rate Period, one (I%) percent of the remaining principal balance of the Loan if during the fouth (4'h) year and thereafter of the Fixed Rate Period. All

 

Request for Staged Advance (Rev. MB)

 

2

 

(Page 12 of 13)

 

prepayments of principal shall be accompanied by the payment of accrued interest on the amount of such prepayment to the date thereof.

 

5.                                 INSURANCE: In addition to the requirements contained in the Agreement, the following insurance requirements shall apply: (a) liability coverage: (1) general liability including/comprehensive form: premises/operations; products/completed operations; contractual liability; independent contractors; broad form property damage; personal injury; and collapse hazard; (ii) bodily injury and property damage combined single limit per occurrence: $5,000,000; and (b) property coverage: all risk of physical loss; equipment must be insured for at least the total original cost.

 

6.                                 REPRESENTATIONS AND WARRANTIES: Borrower hereby (a) reaffirms the representations and warranties made by Borrower to the Lender in the Agreement and the other Loan Documents; (b) represents that Borrower is in compliance with all of the terms and conditions of the Loan Documents; and (c) represents that no-Event of Default or event which with the passage of time, the giving of notice, or both, would constitute an Event of Default, has occurred and is continuing.

 

WITNESS the due execution hereof with the intent to be legally bound.

 

WITNESS the due execution hereof with the intent to be legally bound.

 

	
Accepted By: PNC   EQUIPMENT FINANCE, LLC
    	
AMERIQUEST   TRANSPORTATION
    
	
Lender SERVICES   , Inc.
    	
Borrow
    
	
 
    	
 
    
	
By:
    	
 /s/ Therese M. Woodman
    	
 
    	
By:
    	
 /s/ Mark Joyce
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Assistant Vice   President
    	
 
    	
Title: 
    	
CFO
    
	
 
    	
 
    
	
 
    	
AMERIQUEST   LEASING & MAINTENANCE,INC. Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Mark Joyce
    
	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
CFO
    

 

 

(Page 13 of 13)

 

EXHIBIT A

TO REQUEST FOR STAGED ADVANCE NO. 152620000

 

Equipment Description:

 

	
Qty
    	
 
    	
Description
    	
 
    	
Vin Numbers
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EHOCN561178
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NG9EH9CN561180
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EHOCN561181
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH2CN561182
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH4CN561183
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH6CN561184
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH8CN561185
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EHXCN561186
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH1CN561187
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH3CN561188
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NO9EH1CN561190
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH3CN561174
    
	
1
    	
 
    	
2012 VOLVO VNL64T
    	
 
    	
4V4NC9EH7CN561176
    

 

Request for Staged Advance (Rev. 8/03)

 

4Exhibit 10.16

 

	
Daimler 
    Truck   Financial 
    	
Form OF Note and Security   Agreement (Multi-State)
    	
Date: 
   Quote #: 
   TFFF2508 D
    

 

	
BORROWER:
    	
CO-BORROWER
    
	
AMERIQUEST LEASING & MAINTENANCE, INC 
   6195 CROOKED CREEK ROAD
    	
Name 
   Address
    
	
NORCROSS
    	
GA
    	
30092
    	
GWINNETT
    	
City
    	
State
    	
Zip Code
    
							

 

LENDER: Mercedes-Benz Financial Services USA LLC (13650 Heritage Parkway, Fort Worth, Texas 76177), and its successors, transferees and assigns,

 

I (meaning Individually, collectively, and interchangeably, all Borrowers named above, jointly and severally) have entered into this Note and Security Agreement (“Note”) with Lender In the original principal amount of $           (“Loan Amount’) to borrow funds to be used to purchase the following described equipment (“Equipment”).  I acknowledge that I have accepted delivery of the Equipment in good order without reservation of rights and without implied warranty as to condition, merchantability, and suitability for any purpose.  I further acknowledge and certify that I have entered Into this Note with Lender, and I intend to use the purchased Equipment, primarily for business or commercial purposes, and not for personal, family, household or agricultural purposes.

 

	
DESCRIPTION OF EQUIPMENT: — SEE ATTACHED ADDENDUM “·
    	
I List Payoff to:
    

 

	
New//Used
    	
 
    	
Make
    	
 
    	
Model
    	
 
    	
Serial Number
    	
 
    	
Body Type
    	
 
    	
Model Year
    	
 
    	
Cash Sale Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PROMISE TO PAY: I promise to pay to the order of Lender the Loan Amount together with daily simple interest thereon at the rate set forth on page 2 of this Note from the date of this Note until all of my obligations under this Note are fully paid and satisfied.

 

PAYMENT TERMS: My loan is payable in (       ) payments of (        ) each, commencing on (       ) and continuing on the (1 day of each successive month thereafter, which includes a final payment of the then unpaid principal and interest in the estimated amount of (   ) due on (            ) (except as otherwise stated on the Payment Schedule Addendum attached hereto and made a part hereof). The amount of my final payment may vary depending upon when Lender receives my periodic loan payments, and will include the unpaid principal balance, interest and any other amounts owed as of the final payment due date.** SEE ATTACHED PAYMENT SCHEDULE ADDENDUM **

 

SECURITY AGREEMENT: In order to secure the prompt and punctual payment and satisfaction of my Indebtedness (as defined herein), I am granting Lender a security interest in the Equipment, and in all accessions, replacements and additions to the Equipment, and in all leases and chattel paper of the Equipment, and In all lease payments, rentals, and rights thereto, and in all proceeds derived from the Equipment, including insurance proceeds and refunds of insurance premiums. If Lender permits me to allow others to use or lease the Equipment, I agree to stamp any agreement between me and my lessee with language approved by Lender and to provide and update Lender with all current contact information of user or lessee. I also agree that, to the extent permitted by applicable law, collateral securing other loans, credit sales and leases that I may have with Lender or any affiliate of Lender, whether now or In the future, additionally will secure my Indebtedness under this Note. The Equipment, ail leases and chattel paper of the Equipment, all lease payments, rentals, and rights thereto, proceeds, and my additional collateral securing other loans, credit sales, and leases with Lender or any affiliate of Lender, are individually, collectively and interchangeably referred to under this Note as my “Collateral.” For purposes of this Note, the term ‘Indebtedness” means: (1) my indebtedness under this Note for payment of principal, interest, late charges, returned check fees, liquidated damages and any other amounts due hereunder; (2) to the extent permitted by applicable law, my indebtedness under any other loans, leases or other obligations that I may now and In the future owe to Lender or any affiliate of Lender, other than loans, [eases or other obligations secured by vehicles or other goods which I represent on the loan, lease or other obligation documents are used or to be used by me primarily for personal, family or household purposes; (3) all additional funds that Lender or any affiliate of Lender may advance on my behalf as provided in this Note; and (4)  Lender’s costs and expenses incurred in enforcing Lender’s rights under this Note, and in protecting and presenting the Collateral, including, to the extent permitted by applicable law, reimbursement of Lender’s reasonable attorney’s fees, court costs, and collection expenses.

 

ACKNOWLEDGEMENT: I (we) have read, accepted and acknowledge receipt of a completed copy of the Note, including the Terms and Conditions on the reverse side or following pages which are made a part hereof and I (we) agree to all its terms.

 

	
Borrower:
    	
 
    	
Co-Borrower:
    
	
AMERIQUEST LEASING & MAINTENANCE, INC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    	
X
    
	
Title:
    	
 
    	
Title:
    
					

 

GUARANTY

 

I (we) hereby, jointly, severally and unconditionally guarantee payment of all Indebtedness under this Note, and all extensions, substitutions and refinancings thereof, and agree to the Note’s terms and conditions.  I (we) waive any rights that I (we) may have to require Lender to first exhaust its remedies against the Borrower(s), the Collateral, or any other guarantor, before collecting under this Guaranty. if I (we) default under this Guaranty and you refer this Guaranty to an attorney for collection, I (we) will pay your attorney’s fees, court costs and disbursements to the extent permitted by law.

 

	
Guarantor Name:
    	
 
    	
 
    	
Guarantor Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature: 
    	
X
    	
 
    	
Signature: 
    	
X
    
							

 

TFFF2508 (Rev: 06/01/204 1) MULTI-STATE

 

 

	
Daimler

Truck Financial
    	
Note and Security Agreement (Multi-State)
    	
Date:

Quote No.:

TFFF2508 D
    

 

1. Interest Rate: Daily simple Interest will be assessed on the Loan Amount at the following rate from the date of this Note until all of my obligations under this Note are fully paid and satisfied:   % per annum . Interest will be computed on the basis of the actual number of days elapsed in a 365 day year, or a 366 day year if a leap year.

 

2. Late Payment/Additional Charges: if I fail to make arty payment within ten (10) days of the due date, I agree to pay Lender a late payment fee In an amount equal to 5% of the unpaid amount, or such lesser amount as may be limited by law. In addition, I agree to pay a charge of $30, or such lesser amount as may be limited by law, for each check, draft or similar instrument presented to Lender that Is returned or dishonored for any reason.

 

3 Prepayment: To the extent permitted by applicable law, I understand that if I prepay what I owe Lender under this Note or if Lender accelerates payment as a result of my default, Lender has the right to charge me, and I agree to pay Lender, liquidated damages In an amount equal to three percent (3%) of my then unpaid principal balance; provided, however, that no liquidated damages will be due lithe remaining term of this Note, including any extension or revision, Is less than twenty-four (24) months on the date of such prepayment.

 

4. Perfection of Security Interest: I authorize Lender to perfect its security Interest In the Collateral, I agree to reimburse Lender for all fling costs and perfection expenses, as well as for all costs of amending, continuing and terminating such filings.

 

5. Covenants: I agree: (1) not to sell, lease, transfer or assign the Collateral without Lenders prior written consent; (2)not to allow any other security Interest or lien to be placed on or to attach to the Collateral; (3) not to make any material changes or alterations to the Equipment without Lender’s prior written consent (Including replacements, additions, accessories or substitutions); (4) not to remove the Equipment from the state In which I reside or have my principal offices, other than in the ordinary course of business, for a period in excess of sixty (60) consecutive days, without first obtaining Lender’s prior written consent; (5) not to re-title the Equipment in another state without first not lying Lender; and (6) If I am a business entity, not to change my name or form or state of organization without first notifying Lender at least thirty (30) days in advance of such change. I further agree: (a) that anything that may be attached to the Equipment will become an accession to the Equipment, and will become part of the Collateral; (b) to make all necessary repairs to, and not to abandon the Equipment; (c) to abide by all Paws and rules and regulations with respect to the use and operation of the Equipment, and to obtain all necessary permits and licenses In those jurisdictions where required; (d) to pay all taxes and assessments levied against the Equipment and to furnish Lender with proof of such payments; and (e) to permit Lender to inspect the Equipment at reasonable times.

 

6. Insurance: I agree to keep the Equipment continuously insured by an Insurance company and with deductible approved by Lender, with comprehensive and collision coverage, and with coverage for any other hazards -Lender may specify from time to time for coverage amounts not less than the actual cash value of the Equipment or the outstanding principal balance of my Indebtedness. I may purchase this insurance from any Insurance company reasonably acceptable to Lender. I agree to provide Lender with written proof of a paid insurance policy, and subsequent renewals, showing Lender as a tender’s loss payee and additional Insured under my insurance policy, which policy will require at least thirty (30) days advance written notice to Lender before it may lapse, be reduced, canceled or terminated for arty reason, I agree that all Insurance proceeds, Including any premium refunds, are payable first to Lender to the extent of its Interest in the Equipment, and I assign my interest in same to Lender, Lender may apply any insurance proceeds and returned premiums received to the unpaid balance of my Indebtedness, Should I fail to purchase and maintain adequate Insurance on the Equipment, as determined by Lender (at Lender’s sole discretion), then Lender may (at Lender’s sole option, and without any responsibility or liability to do so) purchase such Insurance as Lender deems necessary to protect Its interest The amount advanced by Lender for said insurance shall be immediately due and repaid to Lender, together with Interest with a rate up to 18% per annum, as limited by law, from the date of such advance. I authorize Lender to release to third parties any Information necessary to facilitate Insurance and tax monitoring and insurance placement. If there is a total loss on any kern of Equipment I agree to Immediately pay to Lender all Insurance proceeds and amounts needed to retire the unpaid principal balance plus accrued Interest and any other allocable amounts then due and owing on such item of Equipment. All Insurance policies financed under this Note, unless a shorter period Is specified In the policy, end upon the original due date of the last payment due under this Note, If I am due any Insurance refund, I will seek same from my Insurance company. Lender does not require me to have credit life Insurance.

 

THE INSURANCE REQUIRED UNDER THIS NOTE IS NOT PUBLIC LIABILITY INSURANCE AND DOES NOT COVER LIABILITY FOR INJURY TO ANY PERSONS OR DAMAGES TO PROPERTY.

 

7. Default and Acceleration: Lender has the right at its sole option to insist on Immediate payment In full of all Indebtedness that I may axe to Lender upon the occurrence of any one or more of the following events, In each case to the extent permitted by applicable law: (1) if I fall to make any payment under this Note when due; or (21 if I am in default under any other provision of this Note, or (3) If I am in default under any other loan, lease, extension of credit, or obligation that I may then owe to Lender or any affiliate of Lender other than loans, leases, extensions of credit or obligations secured by vehicles or other goods which I represent on the loan, lease or other credit or obligation documents are used or to be used by me primarily for personal, family or household purposes; or (4) if I am other than an Individual and I, without Lender’s consent (a) make a significant change in my management ownership or control; or (b) merge, transfer, acquire or consolidate with any other entity; or (5) it I should become insolvent, or the subject of a bankruptcy or other relief from creditors; or (6) if any of the Equipment is seized under process of law; or (7) if any guaranty of my obligations under this Note Is withdrawn or becomes unenforceable for any reason; or (8) (Lender reasonably believes Itself to be Insecure in the repayment of this Note, After default and acceleration, t agree to continue to pay Lender Interest on the then unpaid balance of my Indebtedness at the rate of eighteen (18%) percent per annum, or such lesser rate as may be limited by law,

 

8. Default Remedies: Should I default under this Note, and Lender elects to accelerate payment of my Indebtedness, Lender may exercise all of the rights and remedies available to secured creditors generally under the Uniform Commercial Code, I agree to turn over and deliver the Collateral to Lender at my expense, at the time and at the location Lender may demand of me. Alternatively, to the extent permitted by applicable law, Lender may enter any premises or other place where the Collateral may be located, and take possession of the Collateral, and all other property then located on or In the Collateral, provided that Lender Is able to do so without breach of the peace. To the extent permitted by applicable law, Lender may then sell the Collateral without warranty at public or private sale, and apply the sale proceeds to the satisfaction of my Indebtedness. Unless otherwise required by applicable law, Lender has no obligation to clean-up, repair, or prepare the Collateral for sale. I -hereby agree that Lender may advertise and sell repossessed Collateral through www.usedtauckinventoryeem or other Internet websites through which equipment or motor vehicles similar to the Collateral Is sold and that such sale shall be deemed- a commercially reasonable disposition of the Collateral. Any requirement that Lender notify me of the sale or other disposition of the Collateral will be satisfied if Lender sends me a written communication at least ten (10) days in advance of the date on which a public sale is scheduled, or within ten (10) days in advance of the time after which a private sale or other disposition may take piece. Furthermore, to the extent permitted by applicable law, upon default Lender may cancel any insurance financed under this Note and apply the refunded premium to my Indebtedness and I authorize Lender to notify anyone using equipment to pay Lender directly for my Indebtedness.

 

9. Waivers: All Borrowers and Guarantors waive presentment notice, and demand for payment, and agree that our liability under this Note shall be joint and several with each other. We further agree that discharge or release of any party, or Collateral, or any extension of time for payment, or any delay In enforcing Lender’s rights, will not cause Lender to lose any of its rights. TO THE EXTENT PERMITTED BY APPLICABLE LAW, I EXPRESSLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY DISPUTE REGARDING OR ARISING OUT OF THIS NOTE, THE SALE OF THE EQUIPMENT, OR MY RELATIONSHIP WITH LENDER OR EQUIPMENT SELLER.

 

10. Collection/Attomey’s Fees and Expenses: If Lender sues me, or if Lender refers my loan to an attorney for collection, to the extent permitted by applicable law, I agree to pay Lender reasonable attorney’s fees actually Incurred. I further agree to reimburse Lender for its court costs and reasonable collection expenses Incurred In enforcing Lender’s rights under this Note.

 

11. Savings Clause: It is Lender’s intent to fully comply with all laws and regulations limiting imposition and collection of interest and other fees and charges in connection with my loan. Should I be ceded upon, or should I ever pay Interest or other fees and charges to Lender In excess of the amount(s) and rate(s) permitted, I agree that Lender may cure such violation by crediting any excess amount that I have paid against my then outstanding principal balance under this Note.

 

12. No Agency Relationship’ No Right to Assert Claims and Defenses: I fully understand and unconditionally agree that neither the Equipment manufacturer and distributor, nor their employees, are Lender’s partners, agents, or representatives, and have no right to commit, bind or obligate Lender In any way. I further understand and unconditionally agree that, except for the limited purpose of assisting In the completion of this Note, neither the Equipment seller nor its employees are Lender’s partners, agents, or representative ,s and have no right to commit, bind or obligate Lender in any way. TO THE EXTENT PERMITTED BY APPLICABLE LAW, MY OBLIGATIONS TO LENDER UNDER THIS NOTE ARE IRREVOCABLE, ABSOLUTE, AND UNCONDITIONAL AND ARE TO BE PAID OR PERFORMED IN ACCORDANCE WITH THEIR TERMS WITH NO RIGHT OF OFFSET, COUNTERCLAIM OR DEFENSE AGAINST LENDER OR ANY ASSIGNEE, INCLUDING BUT NOT LIMITED TO ANY RIGHT OF OFFSET, COUNTERCLAIM OR DEFENSE ARISING FROM ANY EXPRESS OR IMPLIED WARRANTY RELATING TO THE EQUIPMENT INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

13, Representations and Warranties: I represent and warrant to Lender that: (1) my correct legal name and state of residence or organization are listed on page 1 of this Note, and I am properly authorized, licensed and in good standing to conduct business In each applicable jurisdiction; (2) none of the preprinted provisions of this Note have been altered, modified, or stricken by me or by anyone else; (3) I or my authorized representative properly executed this Note in my name and my signature on this Note, or that of my authorized representative, is genuine; and (4) I have and intend to license, title, and register the Equipment in the proper state or jurisdiction.

 

14. Power of Attorney: To the extent permitted by law, I hereby appoint Lender as my attorney-In-fact. My grant of this power of attorney Is coupled with an Interest and is irrevocable until all obligations I owe under this Note are paid In full, As my attorney-in-fact, Lender can, In my name or Lender’s name: (a) sign on my behalf all certificates of ownership, registration cards, financing statements, applications, affidavits or any other documents required to register and properly perfect Lender’s security Interest In the Collateral; (b) transfer my entire Interest In the Collateral as part of a repossession and safe; (c) act on my behalf in insurance matters relating to the Collateral, including, but not limited to, the power to endorse Insurance proceeds checks or drafts on my behalf and cancel any credit life, credit disability, guaranteed automotive protection coverage, extended warranty or other optional Insurance financed under this Note and apply the refunded premium or cost to my outstanding balance if I am In default; and (d) make claims on my behalf under any such insurance policies related to the Collateral.

 

1s. Governing Law: This Note shall be deemed received and accepted by Lender in Fort Worth, Texas on the dale of funding, Furthermore this Note shall be governed and construed under the laws of the State of the Borrower’s address at the time of execution of this Note, as indicated on Paget irrespective of the confect of laws principles of that state.

 

16. Miscellaneous: In this Note, the words “I” “me”, “my’, “we” “us” and “our” individually, 
 collectively and interchangeably mean each person or entity signing this Note as a Borrower, Co-Borrower or Guarantor, their successors and assigns, and all other persons that may be or become obligated under this Note. All schedules executed In connection with this Note are part of this Note. This Note and any such schedules constitute the entire Note between the parties, No modification or amendment of this Note shall be effective unless In writing signed by all parties. All provisions of this Note that are prohibited by applicable law shall be Ineffective solely to the extent of such prohibition without invalidating the other provisions of this Note, Any waiver of Lender’s rights and remedies under this Note shall be effective only If specifically agreed by Lender in writing. To the extent permitted by law, 1 give Lender permission to monitor and record any telephone conversation between Lender and me, including my representatives, service providers and agents.

 

17. ACH Authorization: From time to time I may contact Lender by telephone or otherwise to initiate single or reoccurring electronic debit entries to a specified business bank account held at the financial Institution I designate through the Automated Clearing House (ACH) network. I hereby authorize Lender to initiate all such debit entries in the amount of my monthly payment or payments under this Agreement plus all other amounts due at the time not exceeding $100.00, (or in such other amount as I specify from time to time) and agree to be bound by the rules and regulations of the National Automated Clearing House Association, as they may change from time to time, applicable thereto.

 

18. Authorization to Share Information: Lender may collect non-public information from Borrower and any Guarantor which may consist of information on credit applications or other forms, information regarding transactions with Lender, affiliates or others and Information that Lender receives from credit reporting agencies and other outside sources during the time period that a line of credit Is in effect or that arty balance is due to Lender under any lease or loan agreement (Information’). All Borrowers and Guarantors agree that Lender may disclose any of the Information to any affiliate, assigns or agents of Lender.

 

TFFF2508 (liev.06/01/201i) MULTI-STATE

 

2

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