Document:

ftnchangeintermsagreement.htm

Exhibit 10.4

CHANGE IN TERMS AGREEMENT

	
Principal

$5,000,000.00

	
Loan Date

07-14-2011

	
Maturity

06-30-2012

	
Loan No

80263749

	
Call / Coll

04A0 / STOC

	
Account

202907892

	
Officer

75200

	
Initials

	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	
Borrower:

	
UTG, Inc.

C/O Ted Miller CFO

5250 South 6th Street

Springfield, IL 62703

	
Lender:

	
First Tennessee Bank National Association

Correspondent Services – Memphis

845 Crossover Lane

Memphis, TN 38117

(901) 435-7974

 

	
Principal Amount:  $5,000,000.00

	
Date of Agreement:  July 14, 2011

DESCRIPTION OF EXISTING INDEBTEDNESS.

Promissory Note dated December 8, 2006 from Borrower to Lender, evidencing a revolving line of credit in the original amount of $5,000,000.00 and all modifications in file.

DESCRIPTION OF COLLATERAL.

400,000 Shares of Universal Guaranty Life Insurance Company Stock, Certificate Number 111.

DESCRIPTION OF CHANGE IN TERMS.

The following changes will be effective July 14, 211:

The line amount will be increased from $2,750,000.00 to $5,000,000.00.

The Maturity Date of the line will be extended from July 31, 2011 to June 30, 2012.

The repayment schedule will be the following:

PAYMENT.  Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on June 30, 2012.  In addition, Borrower will pay regular quarterly payments of all accrued unpaid interest due as of each payment date, beginning September 7, 2011, with all subsequent interest payments to be due on the same day of each quarter after that.

VARIABLE INTEREST RATE.  The interest rate on this loan 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 day of the month in which this Note is executed (the “Initial Pricing Date”) and on the 1st day of every third month hereafter (each on “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; provided, however, that if The Wall Street Journal is not published on such date, the BIBOR 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 notifying Borrower.  Lender will tell Borrower the current Index rate upon Borrower’s request.  The interest rate change will not occur more often than each quarter.  Borrower understands that Lender may make loans based on other rates as well.  The Index currently is 0.250% per annum.  Interest on the unpaid principal balance of this loan will be calculated as described in the “INTEREST CALCULATION METHOD” paragraph using a rate of 2.750 percentage points over the Index, adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial rate of 3.250% per annum based on a year of 360 days.  NOTICE:  Under no circumstances will the interest rate on this loan be less than 3.250% per annum or more than the maximum rate allowed by applicable law.

INTEREST CALCULATION METHOD.  Interest on this loan is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.  All interest payable under this loan is computed using this method.

CONTINUING VALIDITY.  Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect.  Consent by Lender to this Agreement does not waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms.  Nothing in this Agreement will constitute a satisfaction of the obligation(s).  It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing.  Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement.  If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it.  This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions.

UPFRONT FEE.  Borrower acknowledges that any fees associated with the Change in Terms and any collateral documents are for the account of the Borrower and Borrower agrees to reimburse Lender for any such fees.  A fee in the amount of $5,000.00 may be due and payable with the next billing under the terms of the Change in Terms and will be in addition to any scheduled payment.

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.  BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

	
BORROWER:

	
 

 

UTG, INC.

	
BY:

	
/s/ Theodore C. Miller

	  
	  	
Theodore C. Miller, Sr. Vice President of UTG, Inc.utgavalonlineofcredit.htm

Exhibit 10.8

	
 

UTG Avalon, LLC

PO Box 5147

Springfield IL 62703

 

 

BORROWER’S NAME AND ADDRESS

“I” includes each borrower above, jointly and severally.

	
First National Bank of Tennessee

Livingston – West Main

1115 West Main Street

Livingston, Tennessee 38570

 

 

LENDER’S NAME AND ADDRESS

“You” means the lender, its successors and assigns.

	
 

Loan Number 203200342-00001

Date 12/28/2011____________

Maturity Date 01/03/2013_____

Loan Amount $ 5,000,000.00___

Renewal Of _________________

For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of _FIVE MILLION DOLLARS AND ZERO CENTS______________________________________________ Dollars $ 5,000,000.00__________________________________________

	
o

	
Single Advance: I will receive all of this principal sum on N/A__________.  No additional advances are contemplated under this note.

	
x

	
Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note.  On 12/28/2011____

________ I will receive the amount of $ 5,000,000.00_____ and future principal advances are contemplated.

	  	
Conditions: The conditions for future advances are _______________________________________________________________________

A.  Only upon such terms and under such conditions as you may deem appropriate at the time each advance is requested.______________

_________________________________________________________________________________________________________________

x Open End Credit: You and I agree that I may borrow up to the maximum principal sum more than one time.  This feature is subject to all other conditions and expires on __01/03/2013_________________________.

o Closed End Credit: You and I agree that I may borrow (subject to all other conditions) up to the maximum principal sum only one time.

	
INTEREST: I agree to pay interest on the outstanding principal balance from __12/28/2011________________ at the rate of __4.000000__ %

	  	
per year until _the rate changes as provided for in the note_______________.

	
x

	
Variable Rate: This rate may then change as stated below.

	  	
x Index Rate: The future rate will be ___.500000___Above________________ the following index rate:____________________________

the lowest of the U.S. Prime Rates as published in the money section of the Wall Street Journal____________________________________

_________________________________________________________________________________________________________________

	  	
o No Index: The future rate will not be subject to any internal or external index.  It will be entirely in your control.

x Frequency and Timing: The rate on this note may change as often as __monthly_____________________________________________.

	  	
A change in the interest rate will take effect _1st day of month following rate change_____________________________________.

	  	
x Limitations: During the term of this loan, the applicable annual interest rate will not be more than ________21.000000_ % or less than

	  	
_______4.000000 %.  The rate may not change more than ________________________ % each __________________________________.

	  	
Effect of Variable Rate: A change in the interest rate will have the following effect on the payments:

	  	
x The amount of each scheduled payment will change.

	
o The amount of the final payment will change.

	  	
o _N/A__________________________________________________________________________________________________________.

	
ACCRUAL METHOD: Interest will be calculated on a _Actual/Actual____________ basis.

	
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below:

	  	
x on the same fixed or variable rate basis in effect before maturity (as indicated above).

o at a rate equal to _NA____________________________________________________________________________________________.

	
x LATE CHARGE: If a payment is made more than _15___ days after it is due, I agree to pay a late charge of __5% of the payment__________.

	  	  
	
x ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which o are  x are not included in the principal amount

	  	
above: _Loan Fee__________________________________________________________________________________________________.

	
PAYMENTS: I agree to pay this note as follows:

	
x

	
Interest: I agree to pay accrued interest _2 Semiannually Payment(s) varying from $100,549.44 to $102,738.23 beginning 07-03-2012_____

_________________________________________________________________________________________________________________

	
x

	
Principal: I agree to pay the principal __01-03-2013_______________________________________________________________________

_________________________________________________________________________________________________________________

	
o

	
Installments: I agree to pay this note in ___________ payments.  The first payment will be in the amount of $ _______________________

and will be due __________________________________.  A payment of $ _____________________ will be due _____________________

______________________________________________________________________________ thereafter.  The final payment of the entire

unpaid balance of principal and interest will be due ____________________________________________________.

	
o

	
Unpaid Interest: Any accrued interest not paid when due (whether due by reason of a schedule of payments or due because of Lender’s demand) will become part of the principal thereafter, and will bear interest at the interest rate in effect from time to time as provided for in this agreement.

	
PURPOSE: The purpose of this loan is _Line of Credit__________________________________________________________________________.

	
ADDITIONAL TERMS:

	  	
This loan has a demand feature, however, if no demand is made, the loan is payable according to the terms specified under “Payments” above.

 

SECURITY

	
SECURITY INTEREST:   I  give  you  a  security  interest  in  all  of  the   Property   described   below   that   I   own   or   have   sufficient   rights   in  which  to   transfer   an

	  	
interest, now or in the future, wherever the Property is or will be located, and all proceeds and products of the Property.  “Property” includes all parts, accessories, repairs, replacements, improvements, and accessions to the Property; any original evidence of title or ownership; and all obligations that support the payment or performance of the Property.  “Proceeds” includes anything acquired upon the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on account of the Property.

	  	
o

	
Accounts and Other Rights to Payment: All rights to payment, whether or not earned by performance, including, but not limited to, payment for property or services sold, leased, rented, licensed, or assigned.  This includes any rights and interests (including all liens) which I have by law or agreement against any account debtor or obligor.

 

	  	
o

	
Inventory: All inventory held for ultimate sale or lease, or which has been or will be supplied under contracts of service, or which are raw materials, work in process, or materials used or consumed in my business.

 

	  	
o

	
Equipment: All equipment including, but not limited to machinery, vehicles, furniture, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts, and tools.  The Property includes any equipment described in a list or schedule I give to you, but such a list is not necessary to create a valid security interest in all of my equipment.

 

	  	
o

	
Instruments and Chattel Paper: All instruments, including negotiable instruments and promissory notes and any other writings or records that evidence the right to payment of a monetary obligation, and tangible and electronic chattel paper.

 

	  	
o

	
General Intangibles: All general intangibles including, but not limited to, tax refunds, patents and applications for patents, copyrights, trademarks, trade secrets, goodwill, trade names, customer lists, permits and franchises, payment intangibles, computer programs and all supporting information provided in connection with a transaction relating to computer programs, and the right to use my name.

 

	  	
o

	
Documents: All documents of title including, but not limited to, bills of lading, dock warrants and receipts, and warehouse receipts.

 

	  	
o

	
Farm Products and Supplies: All farm products including, but not limited to, all poultry and livestock and their young, along with their produce, products, and replacements; all crops, annual or perennial, and all products of the crops; and all feed, seed, fertilizer, medicines, and other supplies used or produced in my farming operations.

 

	  	
o

	
Government Payments and Programs: All payments, accounts, general intangibles, and benefits including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance and diversion payments, production flexibility contracts, and conservation reserve payments under any preexisting, current, or future federal or state government program.

 

	  	
o

	
Investment Property: All investment property including, but not limited to, certificated securities, uncertificated securities, securities entitlements, securities accounts, commodity contracts, commodity accounts, and financial assets.

 

	  	
o

	
Deposit Accounts: All deposit accounts including, but not limited to, demand, time, savings, passbook, and similar accounts.

 

	  	
o

	
Specific Property Description: The Property includes, but is not limited by, the following:

	  
	
If this agreement covers timber to be cut, enter real estate description and record owner information:_____________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

	
The Property will be used for a    o personal    o business    o agricultural    o ________________________________________________________purpose.

	
Borrower/Owner State of organization/registration (if applicabale)__________________________________________________________________________

ADDITIONAL TERMS OF THE SECURITY AGREEMENT

GENERALLY – This agreement secures this note and any other debt I have with you, now or later.  However, it will not secure other debts if you fail with respect to such other debts, to make any required disclosure about this security agreement or if you fail to give any required notice of the right of rescission.  If property described in this agreement is located in another state, this agreement may also, in some circumstances, be governed by the law of the state in which the Property is located.

NAME AND LOCATION – My name indicated on page 1 is my exact legal name.  If I am an individual, my address is my principal residence.  If I am not an individual, my address is the location of my chief executive offices or sole place of business.  If I am an entity organized and registered under state law, my address is located in the state in which I am registered, unless otherwise indicated on page 2.  I will provide verification of registration and location upon your request.    I will provide you with at least 30 days notice prior to any change in my name, address, or state of organization or registration

OWNERSHIP AND DUTIES TOWARD PROPERTY   –   I represent that I own all of the Property, or to the extent this is a purchase money security interest I will acquire ownership of the Property with the proceeds of the loan.  I will defend it against any other claim.  Your claim to the Property is ahead of the claims of any other creditor.  I agree to do whatever you require to protect your security interest and to keep your claim in the Property ahead of the claims of other creditors.  I will not do anything to harm your position.  I will not use the Property for a purpose that will violate any laws or subject the Property to forfeiture or seizure.

   I will keep books, records and accounts about the Property and my business in general.  I will let you examine these records at any reasonable time.  I will prepare any report or accounting you request, which deals with the Property.

   I will keep the Property in my possession and will keep it in good repair and use it only for the purpose(s) described on page 1 of this agreement.  I will not change this specified use without your express written permission.  I represent that I am the original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property.

   I will keep the Property at my address listed on page 1 of this agreement, unless we agree I may keep it at another location.  If the Property is to be used in another state, I will give you a list of those states.  I will not try to sell the Property unless it is inventory or I receive your written permission to do so.  If I sell the Property I will have the payment made payable to the order of you and me.

   You may demand immediate payment of the debt(s) if the debtor is not a natural person and without your prior written consent; (1) a beneficial interest in the debtor is sold or transferred, or (2) there is a change in either the identity or number of members of a partnership, or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation.

   I will pay all taxes and charges on the Property as they become due.  You have the right of reasonable access in order to inspect the property.  I will immediately inform you of any loss or damage to the Property.

   If I fail to perform any of my duties under this security agreement, or any mortgage, deed of trust, lien or other security interest, you may without notice to me perform the duties or cause them to be performed.  Your right to perform for me shall not create an obligation to perform and your failure to perform will not preclude you from exercising any of your other rights under the law or this security agreement.

PURCHASE MONEY SECURITY INTEREST – For the sole purpose of determining the extent of a purchase money security interest arising under this security agreement: (a) payments on any nonpurchase money loan also secured by this agreement will not be deemed to apply to the Purchase Money Loan, and (b) payments on the Purchase Money Loan will be deemed to apply first to the nonpurchase money portion of the loan, if any, and then to the purchase money obligations in the order in which the items of collateral were acquired or if acquired at the same time, in the order selected by you.  No security interest will be terminated by application of this formula.  “Purchase Money Loan” means any loan the proceeds of which, in whole or in part, are used to acquire any collateral securing the loan and all extensions, renewals, consolidations and refinancing of such loan.

PAYMENTS BY LENDER – You are authorized to pay, on my behalf, charges I am or may become obligated to pay to preserve or protect the secured property (such as property insurance premiums).  You may treat those payments as advances and add them to the unpaid principal under the note secured by this agreement or you may demand immediate payment of the amount advanced.

INSURANCE – I agree to buy insurance on the Property against the risks and for the amounts you require and to furnish you continuing proof of coverage.  I will have the insurance company name you as loss payee on any such policy.  You may require added security if you agree that insurance proceeds may be used to repair or replace the Property.  I will buy insurance from a firm licensed to do business in the state where you are located.  The firm will be reasonably acceptable to you.  The insurance will last until the Property is released from this agreement.  If I fail to buy or maintain the insurance (or fail to name you as loss payee) you may purchase it yourself.

WARRANTIES AND REPRESENTATIONS – If this agreement includes accounts, I will not settle any account for less than its full value without your written permission.  I will collect all accounts until you tell me otherwise.  I will keep the proceeds from all the accounts and any goods which are returned to me which I take back in trust for you.  I will not mix them with any other property of mine.  I will deliver them to you at your request.  If you ask me to pay you the full price on any returned items or items retaken by myself, I will do so.  You may exercise my rights with respect to obligations of any account debtors, or other persons obligated on the Property, to pay or perform, and you may enforce any security interest that secures such obligations.

   If this agreement covers inventory, I will not dispose of it except in my ordinary course of business at the fair market value for the Property, or at a minimum price established between you and me.

	
 

Any person who signs within this box does so to give you a security interest in the Property described on this page.  This person does not promise to pay the note.  “I” as used in this security agreement will include the borrower and any person who signs within this box.

Date ___________________________

 

Signed ______________________________________________________________

 

   If this agreement covers farm products I will provide you, at your request, a written list of the buyers, commission merchants or selling agents to or through whom I may sell my farm products.  In addition to those parties named on this written list, I authorize you to notify at your sole discretion any additional parties regarding your security interest in my farm products.  I remain subject to all applicable penalties for selling my farm products in violation of my agreement with you and the Food Security Act.  In this paragraph the terms farm products, buyers, commission merchants and selling agents have the meanings given to them in the Federal Food Security Act of 1985.

   If this agreement covers chattel paper or instruments, either as original collateral or proceeds of the Property, I will note your interest on the face of the chattel paper or instruments.

REMEDIES – I will be in default on this security agreement if I am in default on any note this agreement secures or if I fail to keep any promise contained in the terms of this agreement.  If I default, you have all of the rights and remedies provided in the note and under the Uniform Commercial Code.  You may require me to make the secured property available to you at a place which is reasonably convenient.  You may take possession of the secured property and sell it as provided by law.  The proceeds will be applied first to your expenses and then to the debt.  I agree that 10 days written notice sent to my last known address by first class mail will be reasonable notice under the Uniform Commercial Code.  My current address is on page 1.

PERFECTION OF SECURITY INTEREST – I authorize you to file a financing statement covering the Property.  I will comply with, facilitate, and otherwise assist you in connection with obtaining possession of or control over the Property for purposes of perfecting your security interest under the Uniform Commercial Code.

ADDITIONAL TERMS OF THE NOTE

DEFINITIONS – As used on pages 1 and 2, “x” means the terms that apply to this loan.  “I,” “me” or “my” means each Borrower who signs this note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this note (together referred to as “us”).  “You” or “your” means the Lender and its successors and assigns.

APPLICABLE LAW – The law of the state of Tennessee will govern this agreement.  Any term of this agreement which is contrary to applicable law will not be effective, unless the law permits you and me to agree to such a variation.  If any provision of this agreement cannot be enforced according to its terms, this fact will not affect the enforceability of the remainder of this agreement.  No modification of this agreement may be made without your express written consent.  Time is of the essence in this agreement.

PAYMENTS – Each payment I make on this note will first reduce the amount I owe you for charges which are neither interest nor principal.  The remainder of each payment will then reduce accrued unpaid interest, and then unpaid principal.  If you and I agree to a different application of payments, we will describe our agreement on this note.  I may prepay a part of, or the entire balance of this loan without penalty, unless we specify to the contrary on this note.  Any partial prepayment will not excuse or reduce any later scheduled payment until this note is paid in full (unless, when I make the prepayment, you and I agree in writing to the contrary).

INTEREST – Interest accrues on the principal remaining unpaid from time to time, until paid in full.  If I receive the principal in more than one advance, each advance will start to earn interest only when I receive the advance.  The interest rate in effect on this note at any given time will apply to the entire principal sum outstanding at that time.  You and I may provide in this agreement for accrued interest not paid when due to be added to principal.  Notwithstanding anything to the contrary, I do not agree to pay and you do not intend to charge any rate of interest that is higher than the maximum rate of interest you could charge under applicable law for the extension of credit that is agreed to in this note (either before or after maturity).  If any notice of interest accrual is sent and is in error, we mutually agree to correct it, and if you actually collect more interest than allowed by law and this agreement, you agree to refund it to me.

INDEX RATE – The index will serve only as a device for setting the interest rate on this note.  You do not guarantee by selecting this index, or the margin, that the interest rate on this note will be the same rate you charge on any other loans or class of loans you make to me or other borrowers.

POST MATURITY RATE – For purposes of deciding when the “Post Maturity Rate” (shown on page 1) applies, the term “maturity” means the date of the last scheduled payment indicated on page 1 of this note or the date you accelerate payment on the note, whichever is earlier.

SINGLE ADVANCE LOANS – If this is a single advance loan, you and I expect that you will make only one advance of principal.  However, you may add other amounts to the principal if you make any payments described in the “PAYMENTS BY LENDER” paragraph on page 2, or if we have agreed that accrued interest not paid when due may be added to principal.

MULTIPLE ADVANCE LOANS – If this is a multiple advance loan, you and I expect that you will make more than one advance of principal.  If this is closed end credit, repaying a part of the principal will not entitle me to additional credit.

SET-OFF – I agree that you may set off any amount due and payable under this note against any right I have to receive money from you.

	
“Right to receive money from you” means:

	
(1)

	
any deposit account balance I have with you;

	
(2)

	
any money owed to me on an item presented to you or in your possession for collection or exchange; and

	
(3)

	
any repurchase agreement or other nondeposit obligation

   “Any amount due and payable under this note” means the total amount of which you are entitled to demand payment under the terms of this note at the time you set off.  This total included any balance the due date for which you properly accelerate under this note.

   If my right to receive money from you is also owned by someone who has not agreed to pay this note, your right of set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement.  Your right of set-off does not apply to an account or other obligation where my rights are only as a representative.  It also does not apply to any Individual Retirement Account or other tax-deferred retirement account.

   You will not be liable for the dishonor of any check when the dishonor occurs because you set off this debt against any of my accounts.  I agree to hold you harmless from any such claims arising as a result of your exercise of your right to set-off.

DEFAULT – I will be in default if any one or more of the following occur: (1) I fail to make a payment on time or in the amount due; (2) I fail to keep the Property insured, if required; (3) I fail to pay, or keep any promise, on any debt or agreement I have with you; (4) any other creditor of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared incompetent, make an assignment for the benefit of creditors, or become insolvent (either because my liabilities exceed my assets or I am unable to pay my debts as they become due); (6) I make any written statement or provide any financial information that is untrue or inaccurate at the time it was provided; (7) I do or fail to do something which causes you to believe you will have difficulty collecting the amount I owe you; (8) any collateral securing this note is used in a manner or for a purpose which threatens confiscation by a legal authority; (9) I change my name or assume an additional name without first notifying you before making such a change; (10) I fail to plant, cultivate and harvest crops in due season if I am a producer of crops; (11) any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M.

REMEDIES - If I am in default on this note you have, but are not limited to, the following remedies:

	
(1)

	
You may demand immediate payment of all I owe you under this note (principal, accrued unpaid interest and other accrued unpaid charges).

	
(2)

	
You may set off this debt against any right I have to the payment of money from you, subject to the terms of the “SET-OFF” paragraph herein.

	
(3)

	
You may demand security, additional security, or additional parties to be obligated to pay this note as a condition for not using any other remedy.

	
(4)

	
You may refuse to make advances to me or allow purchases on credit by me.

	
(5)

	
You may use any remedy you have under state or federal law.

	
(6)

	
You may make use of any remedy given to you in any agreement securing this note.

   By selecting any one or more of these remedies you do not give up your right to use later any other remedy.  By waiving your right to declare an event to be a default, you do not waive your right to consider later the event a default if it continues or happens again.

COLLECTION COSTS AND ATTORNEY’S FEES – I agree to pay all costs of collection, replevin or any other or similar type of cost if I am in default.  In addition, if you hire an attorney to collect this note, I also agree to pay any fee you incur with such attorney plus court costs (except where prohibited by law).  To the extent permitted by the United States Bankruptcy Code, I also agree to pay the reasonable attorney’s fees and costs you incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code.

WAIVER – I give up my rights to require you to do certain things.  I will not require you to:

	
(1)

	
demand payment of amounts due (presentment);

	
(2)

	
obtain official certification of nonpayment (protest); or

	
(3)

	
give notice that amounts due have not been paid (notice of dishonor).

   I waive any defenses I have based on suretyship or impairment of collateral.

OBLIGATIONS INDEPENDENT – I understand that I must pay this note even if someone else has also agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement).  You may sue me alone, or anyone else who is obligated on this note, or any number of us together, to collect this note.  You may without notice release any party to this agreement without releasing any other party.  If you give up any of your rights, with or without notice, it will not affect my duty to pay this note.  Any extension of new credit to any of us, or renewal of this note by all or less than all of us will not release me from duty to pay it.  (Of course, you are entitled to only one payment in full.)  I agree that you may at your option extend this note or the debt represented by this note, or any portion of the note or debt, from time to time without limit or notice and for any term without affecting my liability for payment of the note.  I will not assign my obligation under this agreement without your prior written approval.

FINANCIAL INFORMATION – I agree to provide you, upon request, any financial statement or information you may deem necessary.  I warrant that the financial statements and information I provide to you are or will be accurate, correct and complete.

SIGNATURES: I AGREE TO THE TERMS OF THIS AGREEMENT (INCLUDING THOSE ON PAGES 1 AND 2).  I have received a copy on today’s date.

	
/s/ Theodore C. Miller

	  	
/s/ James P. Rousey

	
Theodore C. Miller,      Manager

	  	
James P. Rousey,     Authorized Signer

	  	  	  
	  	  	  
	
 

SIGNATAURE FOR LENDER:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00201-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00201-of-00352.parquet"}]]