Document:

Exhibit 10.3

 

Wachovia
Bank, N.A.

LOAN AGREEMENT

April 15, 2002

     THIS AGREEMENT, made as of the date set
forth above, in favor of WACHOVIA BANK, N.A., (the "Bank"), by THE
GOLDFIELD CORPORATION, a Delaware Corporation (the "Borrower"), and
SOUTHEAST POWER CORPORATION, a Florida Corporation (the "Guarantor").

     In
consideration of the Bank making a loan of $6,000,000.00 to Borrower (the "loan"),
as evidenced by a promissory note of even date hereof (the "note"),
Borrower and Guarantor agree as follows: 

     1.   Definitions and Reference Terms.  In addition to any other terms defined
herein, the following terms shall have the meaning set forth with respect
thereto:

          (a)   Pre-Sale
is a binding contract between Borrower and a third party purchaser regarding
the purchase of a condominium unit in a particular project accompanied by a
non-refundable deposit of at least ten percent (10%) of the purchase price;

          (b)   Net
Proceeds are the gross sales price from the specific unit in the
condominium less tax prorations and ordinary and customary expenses incurred in
the sale of the particular unit;

          (c)   Total
Costs for a project are all costs including soft costs and land costs
associated with the construction and delivery of a condominium project.  Excluded are allocations for Borrower's
overhead costs and anticipated profit.

     2.   Representations and Warranties. To
induce the Bank to renew the loan, Borrower and Guarantor make the following
representations and warranties, which shall survive the execution and delivery
of the note:

          (a)   The
financial information furnished to Bank in connection with its application for
the loan and in the financial statements submitted to Bank is complete and accurate
and Borrower has no undisclosed direct or contingent liabilities. 

          (b)   Borrower
and Guarantor are each duly organized, existing and in good standing under the
laws of the states of their respective incorporations, each have corporate power
to carry on the business in which each is engaged, and the obtaining and
performance of the loan have been duly authorized by all necessary action of
the board of directors and shareholders of each, respective, corporation under
applicable law, and do not and will not (i) violate any provision of law or any
of its organizational or other organic documents, or (ii) result in a breach
of, constitute a default under, require any consent under, or result in the
creation of any lien, charge, or encumbrance upon any property of Borrower or
Guarantor pursuant to any instrument, order, or other agreement to which
Borrower and/or Guarantor is a party or by which Borrower or Guarantor, any of
its officers as such, or any of its property is bound. 

          (c)   There
are no judgments, liens, encumbrances, or other security interests outstanding
against Borrower or Guarantor or any of their property other than those
disclosed to Bank in connection with its request for the loan. 

          (d)   Neither
Borrower nor Guarantor have incurred any debts, liabilities, or obligations and
has not committed itself to incur any debts, liabilities, or obligations other
than those disclosed to Bank in connection with its request for the loan or
shown on the financial statements submitted to Bank. 

          (e)   Borrower
is in compliance with all applicable federal and state securities laws.  All of the information provided to the
federal and state securities regulators is complete and accurate, and will
continue to be complete and accurate.

     3.   Use of Loan Proceeds. The proceeds of
the loan will be used only for the purpose or purposes of financing the costs
of constructing condominium units in Florida. 
Notwithstanding the foregoing to the contrary, $1,500,000.00 of the loan
may be used to meet the operating capital requirements of Borrower, Guarantor,
or any of their respective subsidiaries. 
Proceeds will not be used to support operating losses or to purchase "margin
stock" pursuant to Regulation U of the Federal Reserve Board or fund
distribution to shareholders. 

     4.   Definition of Tangible Net Worth. "Tangible
Net Worth" is to be defined as total net worth less any intangible assets,
loans to related parties, or loans due from officers.  Deferred taxes will be included in the definition of Tangible Net
Worth.  Borrower's Tangible Net Worth
will be tested annually at fiscal year end. 

     5.   Affirmative Covenants. Borrower hereby
covenants with the Bank that Borrower shall: 

          (a)   Reserve
and keep in force all licenses, permits, and franchises necessary for the
proper conduct of its business and duly pay and discharge all taxes,
assessments, and governmental charges upon Borrower or against Borrower's
property before the date on which penalties attach thereto, unless and to the
extent only that the same shall be contested in good faith and by appropriate
proceedings. 

          (b)   Maintain
with financially sound and reputable insurance companies insurance of the
kinds, covering the risks, and in the amounts usually carried by companies
engaged in business similar to that of Borrower. Borrower will also exhibit or
deliver such policies of insurance to Bank upon request by Bank and provide
appropriate loss payable or mortgagee clauses in the insurance policies in
favor of Bank, as its interest may appear, when requested by Bank.

          (c)   Maintain
executive personnel and management reasonably satisfactory to Bank.  There shall be no change in the Corporation's
current Chief Executive Officer without prior written consent of the Bank.

          (d)   Permit
a representative or agent of Bank to examine and audit any or all of Borrower's
books and records when requested by Bank. 

          (e)   Inform
Bank immediately of any material adverse change in the financial condition of
Borrower. Borrower will also promptly inform Bank of any litigation or
threatened litigation which might substantially affect Borrower's financial
condition. 

          (f)   Maintain
Borrower's property and equipment in a state of good repair. 

          (g)   Maintain
all of the following ratios or amounts, tested quarterly, at calendar
quarter-end: 

               (1)   A
minimum Tangible Net Worth of not less than $14,500,000.00 as of the date
hereof. 

               (2)   A
Current Ratio of not less than 2.0:1.0, tested quarterly.  Current Ratio is defined as the ratio of
current assets to current liabilities. 
Real estate held for resale and the debts associated with this real
estate are to be excluded from this calculation.

               (3)   A
maximum Debt to Tangible Net Worth Ratio not to exceed .60:1.0.  This ratio will be tested quarterly. 

     In
the event of a violation, the Bank may exercise such remedies available to it
as set forth herein, in the note, and all of the other loan documents. All
defined terms shall have the same meaning in accordance with generally accepted
accounting principles applied on a consistent basis. 

          (h)   Abide
by the terms and conditions set forth in this Agreement, the note, and all of
the other documents evidencing or securing this loan.

          (i)   Maintain
its primary deposit relationship with Bank. 
Guarantor, and any subsidiaries of Borrower and/or Guarantor, excluding
mining subsidiaries, shall also maintain their primary deposit relationship
with Bank.

          (j)   Comply
with the following reporting requirements by providing the following
information to Bank:

               (1)   Quarterly
10Q Reports and annual 10K reports of Borrower when filed with the S.E.C., but
no later than 125 days after fiscal year end, or quarter end, as the case may
be.

               (2)   Such
other financial information or disclosure deemed necessary by the Bank from
time to time.

     6.   Negative Covenants. Borrower and
Guarantor will not, except in the ordinary course of its business:

          (a)   Incur
any additional indebtedness, or assume or undertake to assume or guaranty any
additional contingent liability, or assign, mortgage, pledge, encumber, grant any
security interest in, or transfer any of Borrower's or Guarantor's assets,
whether now owned or hereafter acquired. For the purposes hereof, the sale or
assignment of accounts receivable and the execution of leases or rental
agreements shall constitute incurring indebtedness for borrower, and the
execution of any guaranty agreement or letter of credit agreement shall
constitute the incurrence of a contingent liability. 

          (b)   Guarantee,
endorse, or otherwise become surety for or upon the obligation of any person,
firm, or corporation.

          (c)   Lend
additional money or credit, or make new loans, to any person, firm, or
corporation, in excess of $500,000.00.

          (d)   Enter
into any merger or consolidation, or sell, lease, transfer, or otherwise
dispose of all or any substantial part of its assets (except in the ordinary
course of business and except for the sale of Borrower's mining operations),
whether now owned or hereafter acquired; or change its name or any name in
which it does business; or move its principal place of business without giving
concurrent written notice thereof to Bank. 

     7.   Security For Loan. The subsidiary of
Borrower and/or Guarantor which has legal title to the real property to be
developed as a condominium project hereunder shall execute and deliver to Bank
an Agreement Not to Encumber in form satisfactory to Bank in its sole
discretion.  The Bank may also request
from such subsidiary proof that it has valid title to the subject real
property, free and clear of any liens or encumbrances, other than real property
taxes and assessments.

     8.   Conditions for Disbursements.  Borrower, Guarantor,  and/or its subsidiaries  may receive disbursements hereunder for the
following purposes and in the following maximum amounts:

          (a)   Disbursements
for working capital needs of Borrower and/or its subsidiaries, in an amount not
to exceed $1,500,000.00 outstanding from time to time ("Working Capital
Loan").

          (b)   Disbursements
not to exceed $3,500,00.00 per condominium project outstanding from time to
time to finance the costs of developing condominium projects located in
Florida, to be developed by Borrower and its subsidiaries ("Construction
Loan").   In addition to complying
with all the other terms herein contained, disbursements for the Construction
Loan are subject to the following additional terms and conditions:

               (1)   The
contracts for sale and purchase of pre-sales of individual condominium units in
Borrower's projects shall contain a provision providing that the prospective
buyer's deposit shall be at least 10% of the purchase price and shall be
non-refundable to the prospective buyer if the buyer fails to close on the
purchase of the unit for any reason, other than Borrower's inability to deliver
clear title.

               (2)   Prior
to drawing funds under the note for a particular project, the Borrower shall
include the project on the spread sheet form set forth as Exhibit "A"
attached hereto.  At all times hereunder,
the anticipated Net Proceeds from Presales for all projects shall be greater
than the Total Costs of all projects less contributed equity on all
projects.  Furthermore, funds borrowed
hereunder shall be less than the anticipated Net Proceeds for Presales of all
projects.  Notwithstanding the
foregoing, draws for all projects shall not exceed the actual costs incurred on
all projects through the date of the draw request.  All of the Net Proceeds from the sale of a unit in a project
shall be applied against the principal balance due on the note.

               (3)   The
anticipated gross sales prices for the units in all projects are sufficient to
provide Borrower or its subsidiaries with a minimum of a 10% return on the
total costs of all projects.

               (4)   Draws
for all projects are not to exceed 100% of the Total Costs of all the projects.

               (5)   The
construction contract for the condominium projects to be financed hereunder are
to be fixed price, and supported by payment and performance bonds for the full
cost of construction.  Bank reserves the
right to approve the format of said bonds, as well as the quality of the
insurer.

               (6)   The
general contractor(s) in charge of the construction of the condominium projects
must have a high level of experience in the construction of beachside
condominiums.

               (7)   Should
any construction liens be filed against the real property being developed for
condominium projects, Borrower shall have thirty (30) days from receipt of said
lien to obtain a release of same, or bond the lien off according to Florida
Statutes.

               (8)   Draws
hereunder for a particular project shall not exceed $3,500,000.00.  Upon the anticipated commencement of a
particular project, the Borrower is to inform the Bank as to the amount of
funds it plans to use for the new project, and the anticipated total costs of
the project.

               (9)   On
a quarterly basis, Borrower is to: (a) confirm to Bank that the project(s) for
which funds have been drawn on the loan satisfy all of the criteria set forth
hereunder; (b) provide Bank with a spreadsheet indicating what amounts have
been drawn on the loan for the projects, and the remaining costs for the
projects.

               (10)   Should
Borrower fail to satisfy the financial requirements as set forth
hereunder,  it shall, within thirty (30)
days of request by Bank, pay such amounts to Bank as may be required to cause
Borrower to return to compliance with the terms hereof.  Failure to pay such amounts, shall be a
default hereunder, and under the note and all other documents evidencing or
securing same.

     9.   Events of Default. The Bank shall have
the option to declare the entire unpaid amount of the loan and accrued interest
immediately due and payable, without presentment, demand, or notice of any
kind, if any of the following events occurs before the loan is fully repaid:

          (a)   Any
payment of principal or interest on the loan is not made when due.

          (b)   Any
provision of this Agreement is breached or proves to be untrue or misleading in
any material respect.

          (c)   Any
warranty, representation, or statement made or furnished the Bank by Borrower
or Guarantor in connection with the loan and this Agreement (including any
warranty, representation, or statement in the Borrowers financial statements)
or to induce the Bank to make the loan, is untrue or misleading in any material
respect.

          (d)   Any
default occurs under any agreement with another financial institution, which
default is not corrected within the cure period provided in such agreement, if
any.

          (e)   Any
voluntary or involuntary bankruptcy, reorganization, insolvency, arrangement,
receivership, or similar proceeding is commenced by or against Borrower under
any federal or state law, or Borrower makes any assignment for the benefit of
creditors.

          (f)   Any
substantial part of the inventory, equipment, or other property of the
Borrower, real or personal, tangible or intangible, is damaged or destroyed and
the damage or destruction is not covered by collectible insurance.

          (g)   Borrower
or Guarantor defaults in the payment of any principal or interest on any
obligation to Bank or any other creditor.

          (h)   Borrower
suffers or permits any lien, encumbrance, or security interest to arise or
attach to any of the Borrower's property, or any judgment is entered against
Borrower that is not satisfied or appealed within thirty days.

          (i)   Notwithstanding
the foregoing, there shall be a thirty (30) day grace period for any
non-monetary default, and a fifteen (15) day grace period for any monetary
default as provided hereunder.

     10.   Remedies Upon Default. Upon the
occurrence of, or the discovery by Bank of the occurrence, of any of the
foregoing events, circumstances, or conditions of default, Bank shall have, in
addition to its option to declare the entire unpaid amount of the loan and
accrued interest thereon immediately due and payable, all of the rights and
remedies of a secured party under applicable State law. Without in any way
limiting the generality of the foregoing, Bank shall also have the following
specific rights and remedies:

          (a)   To
exercise any and all rights of set-off which Bank may have against any account,
fund, or property of any kind, tangible or intangible, belonging to Borrower
which shall be in Bank's possession or under its control.

          (b)   To
cure such defaults, with the result that all costs and expenses incurred or
paid by Bank in effecting such cure shall be additional charges on the Loan
which bear interest at the interest of the Loan and are payable upon demand.

     11.   Waiver. No failure or delay on the part
of Bank in exercising any power or right hereunder, and no failure of Bank to
give Borrower notice of a default hereunder, shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power preclude
any other or further exercise thereof or the exercise of any other right or
power hereunder. No modification or waiver of any provision of this Agreement
or any instrument executed pursuant hereto or consent to any departure by
Borrower from this Agreement or such instrument shall in any event be effective
unless the same shall be in writing, and such waiver or consent shall be
effective only in the specific instance and for the particular purpose for
which given.

     12.   Benefit.  This Agreement shall be binding upon and shall inure to the
benefit of Borrower, Guarantor and Bank and their respective successors and
assigns.  Bank may assign this Agreement
in whole or in part with any assignment of the loan.  Borrower may not assign this Agreement or its obligations under
the loan without Bank's written consent.

     13.   Construction.  This Agreement shall be governed and construed in accordance with
the laws of the State of Florida, and any litigation arising out of or relating
to this Agreement or the loan shall be commenced and conducted in the courts of
that State or in the federal courts of that State.

           IN WITNESS WHEREOF, this Agreement has
been duly executed as of the 15th day of April 2002.

 

 

  

	
   

  	
   

  	
  BORROWER:

  THE GOLDFIELD CORPORATION,

  a Delaware Corporation

   

  
	
   	
   	
   
	
   	
  By:

   
	
  /s/ Stephen
  R.
  Wherry                                 

  STEPHEN R. WHERRY, Vice-President

   

	
   	
   	
   
	
   	
   	
  GUARANTOR:

  SOUTHEAST POWER CORPORATION,

  a Florida Corporation

   

	
   	
  By:

  	
  /s/ Stephen
  R.
  Wherry                                 

  STEPHEN R. WHERRY, Treasurer
	
   	
   	
    

	
   

  	
   	
  ACCEPTED BY:

  WACHOVIA BANK, N.A.

   

  
	
   

  	
  By:

  	
  /s/ Barry
  Forbes                                         
Barry Forbes, Vice-PresidentEXHIBIT 10(iii)(a)

                                    Amendment

The following clause will replace the existing clause 3(b) in the Employment
Agreement between Barry Pardon and Techdyne, Inc. dated 27th September 2000:

(b) In addition to the base salary as provided in paragraph 3(a), the Company
may pay the Executive an annual bonus. The amount of such annual bonus will be
determined entirely at the discretion of the Chairman and Chief Executive
Officer of the Company and will take account of the financial performance of the
Company in its most recent financial year and the performance of the Executive
in his role as President of the Company in the same period. Such bonus, if any,
shall be paid no later than 31st March of each year and will be in the form of
either cash or shares of Common Stock in the Company.

5 April 2002

ATTEST:                                     TECHDYNE, INC

WITNESS

/s/ Ian Durie                                 By /s/   Samuel J. Russell
---------------------------                   ----------------------------------
                                                       SAMUEL J RUSSELL,
                                                       Chairman of the Board and
                                                       Chief Executive Officer

WITNESS                                     EXECUTIVE

/s/ Roxie Alvarez                                /s/   Barry Pardon
------------------                          ------------------------------------
                                                       BARRY PARDON

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