Document:

ex10-20.htm

Exhibit 10.20

 

 

 

FIFTH RENEWAL, EXTENSION AND MODIFICATION AGREEMENT

 

	
THE STATE OF TEXAS

	
§

 

	COUNTY OF HARRIS	
§

 

This Fifth Renewal, Extension and Modification Agreement (the "Agreement") is executed effective March 1, 2013 (the "Effective Date") by and among THE MINT LEASING NORTH, INC., a Texas corporation (hereinafter called the "Borrower"), JERRY WAYNE PARISH, VICTOR MANUEL GARCIA and THE MINT LEASING, INC., a Texas corporation (individually and collectively, hereinafter called the "Guarantor") and MOODY NATIONAL BANK (hereinafter called the "Lender") to evidence their agreement as follows:

 

WIT N E S S E T H:

WHEREAS, the Lender is the legal and equitable owner and holder of that certain Revolving Line of Credit Promissory Note dated July 24, 2009 in the original principal amount of $10,000,000.00, made by the Borrower and payable to the order of the Lender (hereinafter called the "Note") which Note evidenced that ce1iain revolving line of credit loan by the Lender to the Borrower (the "Loan") secured in part by that certain Collateral Assignment and Security Agreement of even date with the Note; and,

 

WHEREAS, each of the Guarantor executed certain guaranty agreements dated of even date with the Note, guaranteeing the obligations of the Borrower under the Note and all other obligations of the Borrower under any and all of the documents and instruments seeming, evidencing and relating to the Loan (all such documents and instruments, including those executed in connection with the First Renewal, the Second Renewal, the Third Renewal, the Fourth Renewal, all as hereinafter defined, hereinafter collectively called the "Loan Documents");

 

WHEREAS, in connection  with the Note, the Borrower,  the Guarantor and the Lender also entered into that certain Loan Agreement  dated of even date with the Note which stipulated  the use of the funds advanced under the Note; and,

 

WHEREAS, effective December 31, 2009,   the Lender, the Borrower  and the Guarantor executed that ce1iain Renewal, Extension and Modification Agreement (the "First Renewal")  which renewed and extended  the maturity of the Loan until February 28, 2010 and modified  certain other terms of the Loan Documents, including, without limitation, the Note and the Loan Agreement; and,

 

WHEREAS, effective February 10, 2010, the Lender, the Borrower and the Guarantor executed that ce1iain Second Renewal, Extension and Modification Agreement (the "Second Renewal") which renewed and extended the maturity of the Loan until February 28, 2011, removed the revolving line of credit aspect of the Loan and additionally modified certain other terms of some of the Loan Documents, including, without limitation the Note and the Loan Agreement; and,

 

  

  

  

WHEREAS,  effective  February 10, 2011,  the Lender, the Borrower and the Guarantor executed that certain Third Renewal, Extension and Modification Agreement (the "Third Renewal") which renewed and extended the mah1rity of the Loan until March 1, 2012 and modified certain other terms of some of the Loan Documents, including, without limitation the Note and the Loan Agreement; and,

 

WHEREAS, effective March 1, 2012, the Lender, the Borrower and the Guarantor executed that certain Fourth Renewal, Extension and Modification Agreement (the "Fourth Renewal") which renewed and extended the maturity of the Loan until March 1, 2013 and modified certain other terms of some of the Loan Documents, including, without limitation the Note; and,

 

WHEREAS, the Borrower and the Guarantor have requested a further renewal of the Loan and an extension of the Scheduled Maturity Date (as defined herein) and to further modify certain other terms of the Loan Documents as provided for herein; and,

 

WHEREAS, the Lender is agreeable to the foregoing, subject to and in accordance with all of the terms and conditions of this Agreement.

 

NOW THEREFORE, for and in consideration of the premises and of the  mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

(1)  As of the Effective Date, the outstanding principal balance due and payable under the Note is $1,290,462.27.  Any and all accrued interest has been paid current to the Effective Date.

 

(2)  As of the Effective Date, the Note is hereby renewed, extended and modified as follows:

 

(a)  The "Scheduled Maturity Date" shall be March 1, 2014, upon which date any and all unpaid principal and all unpaid accrued interest shall be due and payable in full.

 

(b)  The "Base Rate" shall mean a fixed six and 75/100ths percent (6.75%) per annum.

 

(c)  Payments of principal and  accrued interest  on the indebtedness  are payable in monthly installments of $62,500.00 each, the first installment to become due and payable on April 1, 2013 and one of said installments to become due and payable on the same day of each and every succeeding calendar month thereafter until the Scheduled Maturity Date.  As said installments are paid, they are to be applied first to the payment of interest accrued on the entire amount of said indebtedness unpaid at the time of said payment, and the balance, if any, shall be applied to the payment of principal.

 

  

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The Borrower understands that the monthly installments of principal and interest referred to above are based upon a hypothetical amortization period proposed by the Borrower and agreed to by the Lender; that such installments will not amortize fully the unpaid principal balance of the Note by the Scheduled Maturity Date; that the final installment will be a "balloon" payment; and the Lender has no obligation to refinance such "balloon" payment.

 

(3)  All rights, remedies, titles, liens, security interests and equities evidenced by the Note or any of the remaining Loan Documents are hereby acknowledged by all parties hereto to be valid and subsisting and are hereby recognized to be continued in full force and effect.

 

(4)  It is agreed and acknowledged by the parties hereto that the Lender's requirements in exchange for the consents and modifications herein contained are reasonable in all respects.

 

(5)  The Borrower and the Guarantor agree that all of the Lender's rights and privileges arising by operation of law or arising out of or in connection with the Note, the Loan Agreement and/or the other Loan Documents (originally and as amended and modified by the First Renewal, the Second Renewal, the Third Renewal, the Fourth Renewal and this Agreement) shall be and remain in full force and effect as therein provided, unimpaired by the transaction described herein. Without limiting the generality of the foregoing, it is expressly agreed and understood that the Lender does not waive any existing event of default or breach under the Note, the Loan Agreement or any of the other Loan Documents.

 

(6)  Nothing herein contained shall in any wise impair the Loan Agreement or the other Loan Documents or any security held therefor, or alter, waive, annul, vary or affect any provision, condition or covenant contained therein, except for, and to the extent of the matters provided herein or provided pursuant hereto, nor affect nor impair any rights, powers or remedies of the Lender thereunder, it being the express intent of the parties hereto that the Loan Agreement, the other Loan Documents, and all other instruments and documents executed by any party in connection therewith shall continue in full force and effect, except as may otherwise be expressly provided herein.

 

(7)  This Agreement and the underlying documents to which defined terms herein refer (as modified herein) embody the entire agreement of the parties hereto concerning the subject matter hereof, and supercedes any prior understandings or written or oral agreements between the parties respecting the subject matter hereof.  No variation, modification or alteration of the terms hereof shall be binding upon any party hereto unless set forth in an express formal amendment document executed by all parties hereto.

 

  

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(8)  The Borrower acknowledges and represents that the liens and security interests created and evidenced by the Loan Documents are valid and existing liens of the recited dignity and priority, and the Borrower acknowledges and agrees that there exists no offset, counterclaim or defense of any kind to the Note, the Loan Agreement or to any of the Loan Documents as modified hereby.

 

(9)  By their execution of this Agreement, each of the Guarantor hereby (i) acknowledge and consent to the terms and provisions hereof; (ii) ratify and confirm their guaranty agreement, including all interest and costs of collection, to or for the benefit of the Lender; (iii) agree that their guaranty agreement are and shall remain in full force and effect and that the terms and provisions of their guaranty agreements cover and pertain to the Note, the Loan Agreement and the other Loan Documents  as modified hereby; (iv) acknowledge that there are no claims or offsets against, or defenses or counterclaims to, the terms and provisions of their guaranty agreements or the other obligations created and evidenced by guaranty agreements; (v) certify that the representations and warranties contained in their guaranty agreements remain true and correct representations and warranties  of each of the Guarantor as of the Effective Date hereof; and (vi) acknowledge that the Lender has satisfied and performed its covenants and obligations under their guaranty agreement, the Loan Agreement and the other Loan Documents, and that no action or failure to act by or on behalf of, the Lender has or will give rise to any cause of action or other claim against the Lender for breach of their guaranty agreements, the Loan Agreement or the other Loan Documents  or otherwise.

 

(10)  In consideration of the renewal and extension of the Loan, the Borrower  and the Guarantor hereby waive and release the Lender from any and all claims and defenses, known or unknown, with respect to the Note, the Loan Agreement and the other Loan Documents and the transaction contemplated thereby and hereby.

 

(11)  The Borrower and the Guarantor hereby acknowledge the terms of this Agreement and ratify and affirm their obligations under, and acknowledge, renew and extend their continued liability under, the Note, the Loan Agreement and each Loan Document to which they are a party and agree that the Note, the Loan Agreement and each Loan Document to which they are a party remains in full force and effect.

 

(12)  This Agreement embodies the entire agreement and understanding among the Borrower, the Guarantor and the Lender relating to the subject matter sand supersedes all prior proposals, negotiations, agreements and understandings relating to such subject matter. The Borrower and the Guarantor certify that they are relying upon no representation, warranty, covenant or agreement except for those set forth in this Agreement.

 

(13)  This Agreement may be executed in any number of counterparts and by any party hereto on a separate counterpart, each of which when so executed and delivered shall be deemed an original and all of which when taken together shall constitute one and the same instrument.

 

  

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THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

EXECUTED effective on the date first set forth above.

	  	
BORROWER:

	  	
THE MINT LEASING NORTH, INC., a Texas corporation

	  	  
	  	
By: /s/ Jerry Parish

	  	
Jerry Parish, President

	  	  
	  	
GUARANTOR:

	  	  
	  	
/s/ Jerry Wayne Parish

	  	
JERRY WAYNE PARISH

	  	  
	  	
/s/ Victor Manuel Garcia

	  	
VICTOR MANUEL GARCIA

	  	  
	  	
THE MINT LEASING, INC., a Texas corporation

	  	  
	  	
By: /s/ Jerry Parish

	  	
Jerry Parish, President

ACCEPTED AND AGREED TO BY THE LENDER:

MOODY NATIONAL BANK

By: /s/ Steve Smith

Steve Smith, Executive Vice President

 

  

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THE STATE OF TEXAS

	
§

 

	COUNTY OF HARRIS	
§

 

This instrument was acknowledged before me on this the 26 day of March, 2013, by Jerry Parish, the President of The Mint Leasing North, Inc., a Texas corporation, on behalf of said corporation.

 

	 	
Seal

Notary Public State of Texas

	/s/ F. Martinez                                                    	 
	 	FRANCES MARIE MARTINEZ	Notary Public in and for the State of Texas	 
	 	
Notary Public, State of Texas

My Commission Expires

August 22, 2016

	 	 

 

 

	
THE STATE OF TEXAS

	
§

 

	COUNTY OF HARRIS	
§

 

This instrument was acknowledged before me on this the 26 day of March, 2013, by Jerry Wayne Parish.

 

	 	
Seal

Notary Public State of Texas

	/s/ F. Martinez                                                    	 
	 	FRANCES MARIE MARTINEZ	Notary Public in and for the State of Texas	 
	 	
Notary Public, State of Texas

My Commission Expires

August 22, 2016

	 	 

 

 

	
THE STATE OF TEXAS

	
§

 

	COUNTY OF HARRIS	
§

 

This instrument was acknowledged before me on this the 26 day of March, 2013, by Victor Manuel Garcia.

 

	 	
Seal

Notary Public State of Texas

	/s/ F. Martinez                                                    	 
	 	FRANCES MARIE MARTINEZ	Notary Public in and for the State of Texas	 
	 	
Notary Public, State of Texas

My Commission Expires

August 22, 2016

	 	 

 

 

	
THE STATE OF TEXAS

	
§

 

	COUNTY OF HARRIS	
§

 

This instrument was acknowledged before me on this the 26 day of March, 2013, by Jerry Parish, the President of The Mint Leasing, Inc., a Texas corporation, on behalf of said corporation.

 

	 	
Seal

Notary Public State of Texas

	/s/ F. Martinez                                                    	 
	 	FRANCES MARIE MARTINEZ	Notary Public in and for the State of Texas	 
	 	
Notary Public, State of Texas

My Commission Expires

August 22, 2016

	 	 

 

 

  

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THE STATE OF TEXAS

	
§

 

	COUNTY OF FORT BEND	
§

 

This instrument was acknowledged before me on this the 27th day of March, 2013, by Steve Smith, the Executive Vice President of Moody National Bank, a national banking association, on behalf of said association.

 

	 	 	/s/ Jennifer Galvez                                          	 
	 	 	Notary Public in and for the State of Texas	 
	 	 	
 

Seal

Notary Public 

State of Texas

Comm. Expires 04-12-2014

	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

7ex10-21.htm

Exhibit 10.21

 

 

PROMISSORY  NOTE

 

	
$320,000.00

	
Houston, Texas February 25, 2013

 

Promise to Pay: For value received, Mint Leasing North, Inc., ("Borrower") a Texas Corporation domiciled at 323 North Loop West, Houston, Harris County, Texas 77008, promises to pay to the order of Sambrand Interests,LLC,a limited liability corporation ("Lender") at 1331Gemini Ste 103, Houston Texas 77058, or at other such address as Lender may from time to time specify in writing, in lawful money of the United States of America, the sum of Three Hundred Twenty Thousand and no/100 Dollars ($320,000.00), together  with  accrued interest  on the unpaid  principal  balance thereof, from February 25, 2013, until maturity on or about February 25, 2014.

 

Interest Rate: The unpaid balance of this Note shall bear interest prior to maturity at a fixed rate of twelve percent (12%) per annum. All interest due hereunder shall be computed on the basis of a year of three hundred and sixty-five (365) days and charged for the actual number of days elapsed.

 

Payment:  Borrower  shall pay Lender monthly interest  payments  in the  amount  of $3,200.00 commencing no later  than  March  25, 2013 during  the twelve-month term  of the Note. Upon completion of the interest-only payments, ending with the final credited month on February 25, 2014, Borrower shall pay Lender the Note in full in the amount  of $320,000.00.

 

The following is a recapitulation of the Borrower's payment obligations to Lender:

 

	 	1) March 25, 2013	$	3,200.00	 
	 	2) April 25, 2013	$	3,200.00	 
	 	3) May 25, 2013	$	3,200.00	 
	 	4) June 25, 2013	$	3,200.00	 
	 	5) July 25, 2013	$	3,200.00	 
	 	6) August 25, 2013	$	3,200.00	 
	 	7) September 25, 2013	$	3,200.00	 
	 	8) October 25, 2013	$	3,200.00	 
	 	9) November  25, 2013	$	3,200.00	 
	 	
10) December 25, 2013

	$	3,200.00	 
	 	
11) January 25, 2014

	$	3,200.00	 
	 	
12) February 25, 2014

	$	323,200.00	 

 

Default: This Note shall become immediately due and payable upon the occurrence of one or more of the following events ("Events of Default") provided  such event(s) continues  after  seven (7) business days of written notice thereof has been given to Borrower with respect to any monetary default  and after twenty days of written notice with respect to any non-monetary default:

 

  

  

  

(1)  If default  shall be made in the payment  of any installment of principal  or interest under the Note when due and payable;

 

(2)  If  default  shall  be  made  in  the  performance or  observance  of  any  covenant, agreement or condition set forth  in this Note;

 

(3)  If a decree or order by a court of competent jurisdiction shall have been entered: 

 

(a)  Adjudging the Borrower a bankrupt; or

 

(b) Approving a petition seeking reorganization or rearrangement of Borrower under the Bankruptcy Act, or any other similar applicable Federal or State laws; or

 

(c) Appointing a receiver, liquidator or trustee or similar  functionary to  take charge of all or substantially all, of the assets of Borrower; or

 

(d)  Directing the winding up or liquidation of Borrower's affairs.

 

(4)  If the Borrower  shall:

 

(a)  Institute voluntary  proceedings to be adjudged a bankrupt; or

 

(b) Consent to  the  filing  of bankruptcy  petition against it  or file  a petition or answer or consent seeking reorganization or rearrangement under the Bankruptcy  Act, or  any other  similar  applicable  Federal or  State  laws, or consent to the filing of such petition: or

 

(c) Consent to  the  appointment of a receiver, liquidator or trustee  or similar functionary to take charge of all, or substantially all, of the assets of Borrower; or

 

(d)  Make a general assignment for the benefit  of its creditors; or

 

(e)  Admit in writing its inability to pay its debts generally as they become due; 

 

(5)  Upon Failure of Borrower  to:

 

(a)  Maintain its  books,  accounts  and  records  in  accordance  with  generally accepted accounting principles; or

 

 

  

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(b)  Duly comply with  all the laws applicable to Borrower and its business, the violation of which would have a material and adverse effect on the Borrower; or

 

(c)  Timely file all Federal and State tax returns and pay all taxes as due when due;

 

or

 

(6)  If  Borrower  defaults under  any of its agreements  with third parties for money borrowed; or

 

(7)  If there shall be dissolution or liquidation of Borrower; or

 

(8)  If Borrower assigns, or attempts to assign, this Note  without the  prior, express, written consent of Lender.  Lender, at his sole discretion, may withhold such consent.

 

If an Event of Default occurs in the payment of this Note, then, at the option of Lender, exercised by written notice  to Borrower  as set forth  herein, the unpaid  principal  balance of this Note, together  with any interest  accrued hereon, shall forthwith be and become due and payable and the Lender may, without limitation, prejudice or waiver, proceed to protect and enforce his rights by action at law, suit in equity, or foreclosure under any instrument securing the Note or Lender may  resort  to  any two  or more  of such remedies, such remedies  being  cumulative and not exclusive.

 

If default  is made in the payment  of this Note at maturity, regardless of how its maturity is or might be brought about and this Note is placed in the hands of an attorney for collection or suit is filed hereon, or proceedings in bankruptcy or probate or other legal proceedings are initiated for collection hereof,  the  Borrower  promises  and  agrees to  pay all reasonable  costs, fees and expenses, including, without limitation, attorneys  fees and collection  fees incurred  by Lender in any such case.

 

Default Rate of Interest: If an Event of Default occurs and Borrower is given notice of such Event of Default as herein provided, the rate of interest applicable to the unpaid principal balance of the Note, from the day notice is given to Borrower  until the unpaid principal  balance of the Note is paid in full, shall be the maximum interest rate allowed under the governing law now or hereafter in effect in the State of Texas. The foregoing notwithstanding, it is expressly stipulated and agreed to be the intent  of the Lender and the Borrower  or any other holder of this Note, at all times, to comply with the usury laws and all other laws relating to this Note and any instrument executed by the Borrower in connection herewith now or hereafter in effect in the State of Texas. Accordingly, it is agreed that, notwithstanding any provision to the contrary in this Note or any other document related  hereto, in no event shall this Note or any such other document require  the payment  or permit  the collection of interest in excess of the maximum amount permitted by such laws. If the laws of the State of Texas are ever revised, repealed or judicially interpreted as to render usurious any amount called for herein or under any other such document or if the terms and provisions of accordance to the above or at the duly designated address at such time as notice is given.

 

  

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Successors and Assigns: This Note is for the benefit  of Lender and the Lender's heirs, personal representatives and assigns. In the event of an assignment of the indebtedness represented by this Note  or any part  thereof, the  rights  and benefits  hereunder, to the  extent  applicable  to  the indebtedness  so assigned, may be transferred with such indebtedness. The covenants, term and conditions of this Note are binding on the Borrower, its successors and assigns who may have been consented to in writing by Lender and on all Guarantors hereof  and such Guarantors heirs and personal representatives.

 

 

In witness thereof, the parties, wishing to be bound by the terms of this Note, affix their signatures below on this 25th day of February 2013

	
BORROWER

	
LENDER

	  	  
	  	  
	
/s/ Jerry Parish

	
/s/ Chuck Waddell

	
Jerry Parish

	
Chuck Waddell

	
President

	
Advisor

	
Mint Leasing North, Inc.

	
Sambrand Interests, LLC

 

  

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