Document:

Promissory Note

 

    
      Exhibit 10.4

      First Tennessee Bank
        National Association

       

      PROMISSORY
        NOTE

       

      $18,000,000.00                                                                                                                             December
        8, 2006

                                                                                                                                                          Memphis,
        Tennessee

                 
FOR VALUE RECEIVED,
        UTG, Inc., a Delaware Corporation, (“Borrower”),
        promises to pay to the order of FIRST TENNESSEE BANK NATIONAL ASSOCIATION, 
Memphis, Tennessee (“Lender”; Lender and any subsequent holder[s] hereof
        are hereinafter collectively referred to as “Holder”), the principal sum
        of Eighteen Million and 00/100 DOLLARS ($18,000,000.00), together with interest
        thereon, on so much thereof as shall remain outstanding from time to time,
        at
        the rates hereinafter provided.

                 
[This is a
        Master Promissory Note, and it is contemplated that the full
        principal amount of this Note shall not be advanced on the date hereof and
        that
        further advances shall be disbursed subsequent to the date hereof.  Any
        advance shall be conclusively agreed to have been made to or for the benefit
        of
        and at the request of Borrower when deposited or credited to an account of
        Borrower with Lender.]

                 
The interest rate on
        the Note is subject to change from time to time based on
        changes in an independent index which is the LIBOR Rate (as hereinafter
        defined), adjusted and determined as of the opening of business on the first
        date of the month in which the Note is dated (the “Initial Pricing Date”) and on
        the 1st day of every third month hereafter (the “Interest Rate Change
        Date”).  The “LIBOR RATE” shall mean the London Interbank Offered Rate of
        interest for an interest period of three (3) months, as reported in the Wall
        Street Journal published on each Interest Rate Change Date.  Each change in
        the Index which results from a change in the LIBOR Rate shall become effective,
        without notice to the Borrower, on each Interest Rate Change Date following
        any
        change in the LIBOR Rate; provided, however, that if The Wall Street Journal
        is
        not published on such date, the LIBOR Rate shall be determined by reference
        to
        The Wall Street Journal last published immediately preceding such date (the
        “Index”).  The Index is not necessarily the lowest rate charged by Lender
        on its Loans.  If the Index becomes unavailable during the term of this
        loan, Lender may designate a substitute index after notice to Borrower. 
Lender will tell Borrower the current Index upon Borrower’s request.  The
        interest rate change will not occur more often than every third month. 
Borrower understands the Lender may make loans based on other rates as
        well.  The Index is currently 5.35% per annum.  The interest
        rate to be applied to the unpaid principal balance of this Note will be at
        a
        rate of 1.80 percentage points over the Index, resulting in an initial rate
        of
        7.15% per annum.  Notwithstanding anything else in this instrument
        to the contrary, in no event shall the maximum rate of interest payable in
        respect to the indebtedness evidenced hereby exceed the maximum rate of interest
        allowed to be charged by applicable law.

                 
Payment Schedule.  Said principal
        and the accrued interest thereon
        are payable in the following manner, to-wit:

      (i)        
        Commencing March 8, 2007, and on the same day of each consecutive quarter
        thereafter until and including December 7, 2007, accrued interest only shall
        be
        due and payable.

      (ii)       
        Borrower will pay this loan in 5 principal payments of $3,600,000 each,
        commencing December 7, 2008, and a like amount due annually on the same day
        of
        each year thereafter to and including December 7, 2012, at which time the
        outstanding principal balance hereof and all accrued and unpaid interest
        thereon
        shall be due and payable.  In addition, Borrower will pay regular quarterly
        payments of accrued unpaid interest due as of each payment date, commencing
        March 8, 2007, with all subsequent interest payments to be due on the same
        day
        of each quarter after that.

                 
        Place of Payment.  All payments in respect of the indebtedness
        evidenced by this Note shall be payable in lawful money of the United States
        of
        America, at the office of Lender, 845 Crossover Lane, Suite 150, Memphis,
        Tennessee, 38117 or such other place as the Holder of this Note may designate
        in
        writing.  Interest shall be calculated on a 365/365 basis; that is, by
        applying the ratio of the annual interest rate over a year of 365 days,
        multiplied by the outstanding principal balance, multiplied by the actual
        number
        of days the principal balance is outstanding. 

                 
Late Charge.  Borrower shall
        pay a “late charge” equal to the lesser
        of (i) One Hundred Dollars ($100.00) or (ii) five percent (5%) of any payments
        of principal and/or interest due when paid more than ten (10) days after
        the due
        date thereof (provided that in no event shall said “late charge” result in the
        payment of interest in excess of the maximum interest permitted by law) to
        cover
        the extra expenses involved in handling delinquent payments.

                 
Prepayments.
 The
        indebtedness evidenced hereby may be
        prepaid, in whole or in part, at any time without penalty.  Any prepayment
        shall be applied first to accrued and unpaid interest on the outstanding
        principal balance, and the remainder, if any, shall be applied to reduce
        the
        outstanding principal balance of this Note in the sequential order of its
        maturity.

                 
Security.  This Note is
        secured by, among other things, the lien and
        provisions of a certain Commercial Pledge Agreement, dated of even date
        herewith, executed and delivered by Borrower to Lender, covering certain
        Collateral as described therein.

                 
 Loan Agreement. 
The
        proceeds of this Note are being
        advanced pursuant to the terms of that certain Loan Agreement (“the Loan
        Agreement”) of even date herewith by and between Borrower and Lender. 
Any default under the terms of said Loan Agreement shall constitute a
        default
        hereunder.

      In the event that any
        one
        or more of the Events of Default specified in the Loan Agreement shall have
        happened, the Holder of this Note may proceed to protect and enforce its
        rights
        either by suit in equity and/or by action at law, or by other appropriate
        proceedings, whether for the specific performance of any covenant or agreement
        contained in this Note, the Loan Agreement, the Negative Pledge
        Agreement, or the Commercial Pledge Agreement or in aid of the exercise of
        any
        power or right granted by this Note, the Loan Agreement, the
        Negative Pledge Agreement,  or the Commercial Pledge Agreement  or
        proceed to enforce the payment of this Note or to enforce any other legal
        or
        equitable right of the Holder of this Note.  

      Upon the occurrence
        of any
        Event of Default as set forth herein, at the option of Holder and without
        notice
        to Borrower, all accrued and unpaid interest, if any, shall be added to the
        outstanding principal balance hereof, and the entire outstanding principal
        balance, as so adjusted, shall bear interest thereafter until paid at the
        lesser
        of (a) fourteen percent (14%) per annum or (b) the maximum effective contract
        rate which is it lawful for the holder hereof to charge. (the “Default
        Rate”)  regardless of whether there has been an acceleration of the
        payment of principal as set forth herein.  All such interest shall be paid
        at the time of and as a condition precedent to the curing of any such default
        (to the extent that any such cure is otherwise expressly permitted under
        the
        terms of this Note).

                 
Limitation of Interest.  Notwithstanding
        any provision herein to the
        contrary, it is the intent of the Lender and the Borrower that neither the
        Lender nor any subsequent Holder shall be entitled to receive, collect, reserve
        or apply, as interest, any amount in excess of the maximum lawful rate of
        interest permitted to be charged by applicable law or regulations, as amended
        or
        enacted from time to time.  In the event the Note calls for any interest
        payment that exceeds the maximum lawful rate of interest then applicable,
        such
        interest shall not be received, collected, charged, or reserved until such
        time
        as the interest, together with all other interest then payable, falls within
        the
        then applicable maximum lawful rate of interest.  In the event Lender, or
        any subsequent Holder, receives any such interest in excess of the then maximum
        lawful rate of interest, such amount which would be excessive interest shall
        be
        deemed a partial prepayment of principal and treated hereunder as such, or,
        if
        the principal indebtedness evidenced hereby is paid in full, any remaining
        excess funds shall immediately be paid to Borrower.

                 
Cumulative Rights.  No delay on
        the part of the Holder of this Note
        in the exercise of any power or right under this Note or any other instrument
        executed pursuant hereto shall operate as a waiver thereof, nor shall a single
        or partial exercise of any power or right preclude other or further exercise
        thereof or in the exercise of any other power or right.  Enforcement by the
        Holder of this Note of any security for the payment hereof shall not constitute
        any election by it or remedies so as to preclude the exercise of any other
        remedy available to it. 

                 
Waiver.  Presentment
        for payment, demand, protest and notice of
        demand, protest and nonpayment are hereby waived by Borrower and all other
        parties hereto.  No failure to accelerate the indebtedness evidenced hereby
        by reason of default hereunder, acceptance of a past-due installment or other
        indulgences granted from time to time, shall be construed as a novation of
        this
        Note or as a waiver of such right of acceleration or of the right of Holder
        thereafter to insist upon strict compliance with the terms of this Note or
        to
        prevent the exercise of such right of acceleration or any other right granted
        hereunder or by applicable laws.  Unless otherwise specifically agreed by
        Holder in writing, the liability of Borrower and all other persons now or
        hereafter liable for payment of the indebtedness evidenced hereby, or any
        portion thereof, shall not be affected by (1) any renewal hereof or other
        extension of the time for payment of the indebtedness evidenced hereby or
        any
        amount due in respect thereof, (2) the release of all or any part of any
        collateral now or hereafter securing the payment of the indebtedness evidenced
        hereby or any portion thereof, or (3) the release of or resort to any person
        now
        or hereafter liable for payment of the indebtedness evidenced hereby or any
        portion thereof.  This Note may not be changed orally, but only by an
        agreement in writing signed by the party against whom enforcement of any
        waiver,
        change, modification or discharge is sought.  To the extent permitted by
        applicable law, Borrower hereby waives and renounces for itself, its heirs,
        successors and assigns, all rights to the benefits of any appraisement,
        exception and homestead now provided, or that may hereafter be provided by
        the
        Constitution and laws of the United States of America and of any state thereof
        in and to all of its property, real and personal, against the enforcement
        and
        collection of the obligations evidenced by this Note.

                 
Attorney’s Fees and Costs.  In the event
        one or more Events of
        Default shall occur, and in the event that thereafter this Note is placed
        in the
        hands of an attorney for collection, or in the event this Note is collected
        in
        whole or in part through legal proceedings of any nature, then, and in any
        such
        case, there shall be added to the unpaid principal balance hereof all costs
        of
        collection, including, but not limited to, reasonable attorneys’ fees and all
        expenses incurred in connection with the exercise of any rights under this
        Note
        incurred by the Holder hereof on account of such collection, whether or not
        suit
        is filed.

                 
Governing Law.  This Note has
        been negotiated, executed and
        delivered in the State of Tennessee and shall be construed in accordance
        with
        the laws of the State of Tennessee, except to the extent that Federal law
        may be
        applicable to the determination of the Default Rate.  

                 
Headings.  The headings
        of the Sections of this Note are inserted
        for convenience only and shall not be deemed to constitute a part hereof.

                 
Successors and Assigns.  As used herein,
        the terms “Borrower”
and “Holder” shall be deemed to include their respective successors,
        legal representatives and assigns, whether by voluntary action of the parties
        or
        by operation of law.  In the event that more than one person, firm or
        entity is a Borrower hereunder, then all references to “Borrower” shall be
        deemed to refer equally to each of said persons, firms and/or entities, all
        of
        whom shall be jointly and severally liable for all of the obligations of
        Borrower hereunder.

                 
IN WITNESS WHEREOF,
        the undersigned has caused this Note to be executed as of
        the date first set forth above.

      
      
 

      BORROWER:

       

      UTG, INC.

       

      By:_/s/ Theodore C. Miller_______

       

      Title:_Sr. Vice
        President_________Revolving Credit Line

 

    
      Exhibit 10.5

      First Tennessee Bank
        National Association

       

      REVOLVING CREDIT
        NOTE

       

      $5,000,000.00                                                                                                                       
        December 8, 2006 

                                                                                                                                                    
 Memphis,
        Tennessee

                 
FOR VALUE RECEIVED,
        UTG, Inc., a Delaware Corporation, (“Borrower”),
        promises to pay to the order of FIRST TENNESSEE BANK NATIONAL ASSOCIATION, 
Memphis, Tennessee (“Lender”; Lender and any subsequent holder[s] hereof
        are hereinafter collectively referred to as “Holder”), the principal sum
        of Five Million and 00/100 DOLLARS ($5,000,000.00), together with interest
        thereon, on so much thereof as shall remain outstanding from time to time,
        at
        the rates hereinafter provided.

                 
Borrower will pay this
        loan in one payment of all outstanding principal plus all
        accrued interest on December 7, 2007.  In addition, Borrower will pay
        regular quarterly payments of all accrued interest due as of each payment
        date,
        beginning March 8, 2007, with all subsequent interest payments to be due
        on the
        same day of each quarter after that.  Unless otherwise agreed or required
        by applicable law, payments will be applied first to accrued unpaid interest,
        then to principal, and any remaining amount to any unpaid collection
        costs.

                 
The interest rate on
        the Note is subject to change from time to time based on
        changes in an independent index which is the LIBOR Rate (as hereinafter
        defined), adjusted and determined as of the opening of business on the first
        date of the month in which the Note is dated (the “Initial Pricing Date”) and on
        the 1st day of every third month hereafter (the “Interest Rate Change
        Date”).  The “LIBOR RATE” shall mean the London Interbank Offered Rate of
        interest for an interest period of three (3) months, as reported in the Wall
        Street Journal published on each Interest Rate Change Date.  Each change in
        the Index which results from a change in the LIBOR Rate shall become effective,
        without notice to the Borrower, on each Interest Rate Change Date following
        any
        change in the LIBOR Rate; provided, however, that if The Wall Street Journal
        is
        not published on such date, the LIBOR Rate shall be determined by reference
        to
        The Wall Street Journal last published immediately preceding such date (the
        “Index”).  The Index is not necessarily the lowest rate charged by Lender
        on its Loans.  If the Index becomes unavailable during the term of this
        loan, Lender may designate a substitute index after notice to Borrower. 
Lender will tell Borrower the current Index upon Borrower’s request.  The
        interest rate change will not occur more often than every third month. 
Borrower understands the Lender  may make loans based on other rates as
        well.  The Index is currently 5.35% per annum.  The interest
        rate  to be applied to the unpaid principal balance of this Note will be at
        a rate of 1.80 percentage points over the Index, resulting in an initial
        rate of
        7.15% per annum.  Notwithstanding anything else in this instrument
        to the contrary, in no event shall the maximum rate of interest payable in
        respect to the indebtedness evidenced hereby exceed the maximum rate of interest
        allowed to be charged by applicable law.

                 
Place of Payment.  All payments
        in respect of the indebtedness
        evidenced by this Note shall be payable in lawful money of the United States
        of
        America, at the office of Lender, 845 Crossover Lane, Suite 150, Memphis,
        Tennessee, 38117 or such other place as the Holder of this Note may designate
        in
        writing.  Interest shall be calculated on a 365/365 basis; that is, 
by applying the ratio of the annual interest rate over a year of 365 days,
        multiplied by the outstanding principal balance, multiplied by the actual
        number
        of days the principal balance is outstanding.

                 
Late Charge.  Borrower shall
        pay a “late charge” equal to the lesser
        of (i) One Hundred Dollars ($100.00) or (ii) five percent (5%) of any payments
        of principal and/or interest due when paid more than ten (10) days after
        the due
        date thereof (provided that in no event shall said “late charge” result in the
        payment of interest in excess of the maximum interest permitted by law) to
        cover
        the extra expenses involved in handling delinquent payments.

                 
Prepayments.
 The
        indebtedness evidenced hereby may be
        prepaid, in whole or in part, at any time without penalty.  Any prepayment
        shall be applied first to accrued and unpaid interest on the outstanding
        principal balance, and the remainder, if any, shall be applied to reduce
        the
        outstanding principal balance of this Note in the sequential order of its
        maturity.

                 
Security.  This Note is
        secured by, among other things, the lien and
        provisions of a certain Commercial Pledge Agreement, dated of even date
        herewith, executed and delivered by Borrower to Lender, covering certain
        Collateral as described therein.

                 
Loan
        Agreement.  The proceeds of this Note are being
        advanced pursuant to the terms of that certain Loan Agreement (“the Loan
        Agreement”) of even date herewith by and between Borrower and Lender.  Any
        default under the terms of said Loan Agreement shall constitute a default
        hereunder.

      In the event that any
        one
        or more of the Events of Default specified in the Loan Agreement shall have
        happened, the Holder of this Note may proceed to protect and enforce its
        rights
        either by suit in equity and/or by action at law, or by other appropriate
        proceedings, whether for the specific performance of any covenant or agreement
        contained in this Note, the Loan Agreement, the Negative Pledge
        Agreement, or the Commercial Pledge Agreement or in aid of the exercise of
        any
        power or right granted by this Note, the Loan Agreement, the
        Negative Pledge Agreement, or the Commercial Pledge Agreement  or proceed
        to enforce the payment of this Note or to enforce any other legal or equitable
        right of the Holder of this Note.  

      Upon the occurrence
        of any
        Event of Default as set forth herein, at the option of Holder and without
        notice
        to Borrower, all accrued and unpaid interest, if any, shall be added to the
        outstanding principal balance hereof, and the entire outstanding principal
        balance, as so adjusted, shall bear interest thereafter until paid at the
        lesser
        of (a) fourteen percent (14%) per annum or (b) the maximum effective contract
        rate which it is lawful for the holder hereof to charge. (the “Default
        Rate”) regardless of whether there has been an acceleration of the payment
        of principal as set forth herein.  All such interest shall be paid at the
        time of and as a condition precedent to the curing of any such default (to
        the
        extent that any such cure is otherwise expressly permitted under the terms
        of
        this Note).

                 
Limitation of Interest.  Notwithstanding
        any provision herein to the
        contrary, it is the intent of the Lender and the Borrower that neither the
        Lender nor any subsequent Holder shall be entitled to receive, collect, reserve
        or apply, as interest, any amount in excess of the maximum lawful rate of
        interest permitted to be charged by applicable law or regulations, as amended
        or
        enacted from time to time.  In the event the Note calls for any interest
        payment that exceeds the maximum lawful rate of interest then applicable,
        such
        interest shall not be received, collected, charged, or reserved until such
        time
        as the interest, together with all other interest then payable, falls within
        the
        then applicable maximum lawful rate of interest.  In the event Lender, or
        any subsequent Holder, receives any such interest in excess of the then maximum
        lawful rate of interest, such amount which would be excessive interest shall
        be
        deemed a partial prepayment of principal and treated hereunder as such, or,
        if
        the principal indebtedness evidenced hereby is paid in full, any remaining
        excess funds shall immediately be paid to Borrower.

                 
Cumulative Rights.  No delay on
        the part of the Holder of this Note
        in the exercise of any power or right under this Note, or any other instrument
        executed pursuant hereto shall operate as a waiver thereof, nor shall a single
        or partial exercise of any power or right preclude other or further exercise
        thereof or in the exercise of any other power or right.  Enforcement by the
        Holder of this Note of any security for the payment hereof shall not constitute
        any election by it or remedies so as to preclude the exercise of any other
        remedy available to it. 

                 
Waiver.  Presentment
        for payment, demand, protest and notice of
        demand, protest and nonpayment are hereby waived by Borrower and all other
        parties hereto.  No failure to accelerate the indebtedness evidenced hereby
        by reason of default hereunder, acceptance of a past-due installment or other
        indulgences granted from time to time, shall be construed as a novation of
        this
        Note or as a waiver of such right of acceleration or of the right of Holder
        thereafter to insist upon strict compliance with the terms of this Note or
        to
        prevent the exercise of such right of acceleration or any other right granted
        hereunder or by applicable laws.  Unless otherwise specifically agreed by
        Holder in writing, the liability of Borrower and all other persons now or
        hereafter liable for payment of the indebtedness evidenced hereby, or any
        portion thereof, shall not be affected by (1) any renewal hereof or other
        extension of the time for payment of the indebtedness evidenced hereby or
        any
        amount due in respect thereof, (2) the release of all or any part of any
        collateral now or hereafter securing the payment of the indebtedness evidenced
        hereby or any portion thereof, or (3) the release of or resort to any person
        now
        or hereafter liable for payment of the indebtedness evidenced hereby or any
        portion thereof.  This Note may not be changed orally, but only by an
        agreement in writing signed by the party against whom enforcement of any
        waiver,
        change, modification or discharge is sought.  To the extent permitted by
        applicable law, Borrower hereby waives and renounces for itself, its heirs,
        successors and assigns, all rights to the benefits of any appraisement,
        exception and homestead now provided, or that may hereafter be provided by
        the
        Constitution and laws of the United States of America and of any state thereof
        in and to all of its property, real and personal, against the enforcement
        and
        collection of the obligations evidenced by this Note.

                 
Attorney’s Fees and Costs.  In the event
        one or more Events of
        Default shall occur, and in the event that thereafter this Note is placed
        in the
        hands of an attorney for collection, or in the event this Note is collected
        in
        whole or in part through legal proceedings of any nature, then, and in any
        such
        case, there shall be added to the unpaid principal balance hereof all costs
        of
        collection, including, but not limited to, reasonable attorneys’ fees and all
        expenses incurred in connection with the exercise of any rights under the
        Note
        incurred by the Holder hereof on account of such collection, whether or not
        suit
        is filed.

                 
Revolving Line of
        Credit.  This Note evidences a revolving line of
        credit.  Advances under this Note, as well as directions for payment from
        Borrower’s accounts, may be requested orally or in writing by Borrower or by an
        authorized person.  Until the Maturity Date, Borrower may reborrow funds
        available under the Loan.  Borrower agrees to be liable for all sums
        either: (a) advanced in accordance with the instructions of an authorized
        person
        or (b) credited to any of Borrower’s accounts with Lender in accordance with the
        Loan Agreement.

                 
Governing Law.  This Note has
        been negotiated, executed and
        delivered in the State of Tennessee and shall be construed in accordance
        with
        the laws of the State of Tennessee, except to the extent that Federal law
        may be
        applicable to the determination of the Default Rate.  

                 
Headings.  The headings
        of the Sections of this Note are inserted
        for convenience only and shall not be deemed to constitute a part hereof.

                 
Successors and Assigns.  As used herein,
        the terms “Borrower”
and “Holder” shall be deemed to include their respective successors,
        legal representatives and assigns, whether by voluntary action of the parties
        or
        by operation of law.  In the event that more than one person, firm or
        entity is a Borrower hereunder, then all references to “Borrower” shall be
        deemed to refer equally to each of said persons, firms and/or entities, all
        of
        whom shall be jointly and severally liable for all of the obligations of
        Borrower hereunder.

                 
IN WITNESS WHEREOF,
        the undersigned has caused this Note to be executed as of
        the date first set forth above.

      
 

      BORROWER:

       

      UTG, INC.

       

      By:_/s/ Theodore C. Miller______

       

      Title:_Sr. Vice
        President________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]