Exhibit 10.33
AMENDED AND RESTATED EQUIPMENT
LINE NOTE
(Non-Revolving Line
With Conversion)
|
Amount:
$11,000,000.00
|
|
Date: November 10,
2006
|
|
|
|
Chicago,
Illinois
|
The undersigned, BRAD FOOTE GEAR WORKS, INC., f/k/a BFG Acquisition
Corp., an Illinois corporation (the “Borrower”), with
its chief executive office located at 1309 S. Cicero Avenue,
Cicero, Illinois 60650, for value received, hereby promises to pay
to the order of LASALLE BANK NATIONAL ASSOCIATION f/k/a LaSalle
National Bank f/k/a LaSalle Bank NI, a national banking association
(collectively, together with any holder hereof, the
“Bank”), at the Bank’s main offices at 135 South
LaSalle Street, Chicago, Illinois 60603, or such other address
hereafter designated by the Bank in writing, the principal sum of
Eleven Million and 00/100 ($11,000,000.00) Dollars (U.S.) or if
less, the aggregate unpaid principal amount of all advances
(“Advances”) made by the Bank to the Borrower under
this Note, plus all accrued and unpaid interest calculated and
payable at the applicable rates and in the manner described
below. Amounts borrowed and repaid under this Note may not be
reborrowed.
The term “Conversion Date” shall mean April 29,
2007.
Prior to the Conversion Date, interest shall be payable monthly on
this Note, commencing on November 30, 2006 and continuing on
the last Business Day of each month thereafter, calculated on the
unpaid principal balances hereof at a variable rate per annum equal
to the Prime Rate (as hereinafter defined) minus one percent
(1.0%). The term “Prime Rate” at any time means
the rate of interest then most recently announced or published by
the Bank as its prime rate. Each change in the interest rate
on this Note shall take effect on the effective date of the change
in the Prime Rate. It is expressly agreed that the use of the
term “Prime Rate” is not intended nor does it imply
that said rate of interest is a preferred rate of interest or one
which is offered by the Bank to its most creditworthy
customers. Bank shall be under no obligation to notify
Borrower of any change in the Prime Rate. Interest shall be
computed on the basis of a year consisting of 360 days and paid for
actual days elapsed.
Upon the Conversion Date, the outstanding principal balance of this
Note will be repayable in fifty-nine (59) successive monthly
installments of principal (based on a sixty month amortization),
plus interest as hereinafter provided (except that if the Fixed
Interest Rate, as hereinafter defined, is selected by Borrower,
this Note shall be repayable in monthly installments of principal
and interest (or principal plus if Variable Interest Rate option
chosen), as calculated by the Bank), commencing on May 31,
2007, and payable on the last Business Day of each month
thereafter, followed by a final payment of the entire unpaid
principal balance and accrued interest due on April 30, 2012
(the “Maturity Date”). Interest on this Note
after the Conversion Date shall be payable concurrently with each
principal payment, and shall at Borrower’s election (which
shall be designated by Borrower in a writing delivered to the Bank
prior to the Conversion Date) be calculated at either (i) a
variable rate equal to the Prime Rate minus one percent (1.0%) (the
“Variable Interest Rate”), or (ii) a fixed rate
equal to two percent (2.0%) above the “Swap Rate” (as
hereinafter defined) (such fixed rate, the “Fixed Interest
Rate”).
1
Said election for either the Variable Interest Rate or Fixed
Interest Rate shall be made only once and shall remain in effect
for the balance of the term of this Note. The term
“Swap Rate” shall mean a rate of interest equal to the
per annum rate of interest at which the Bank determines to be its
cost of funds equal to the yield on United States Treasury Notes or
Securities having a maturity closest to the Maturity Date plus a
corresponding swap spread as published in “Bloomberg’s
Financial Markets Commodities News”, in effect on the
Conversion Date, and in the absence of such publication, as
determined by the Bank in its sole discretion.
Advances under this Note will be made in accordance with the terms
of Section 3C of the Loan Agreement (as hereafter defined),
the terms of which are incorporated herein by reference.
Any amount of principal which is not paid when due, whether at the
stated maturity, by acceleration, or otherwise, shall bear interest
payable on demand at an interest rate per annum equal at all times
to the interest rate otherwise then prevailing on this Note plus
three percent (the “Default Rate”). In addition,
a late charge equal to five percent (5%) of each late payment may
be charged on any payment not received by the Bank within five
(5) calendar days after the payment due date, but acceptance
of payment of this charge shall not waive any Default or Event of
Default.
Unless otherwise agreed, all payments shall be first applied to
accrued interest to the date of payment, then to unpaid principal,
and any remaining amount toward Bank’s costs and expenses
incurred in collecting or attempting to collect this Note or
incurred in any other matter or proceeding relating to this
Note.
All payments made on account of the principal and interest hereof
shall be evidenced by entries on the books and records of the Bank
and shall be rebuttable presumptive evidence of the principal
amount and interest owing hereon. The failure to so record
any such amount or any error so recording any such amount shall
not, however, limit or otherwise affect the obligations of the
Borrower hereunder to repay the principal amount borrowed hereunder
and all interest accruing thereon.
If Borrower prepays this Note while its bears interest at a
variable rate, no prepayment penalty shall be charged Borrower for
any such prepayment. If Borrower prepays this Note while it
bears interest at the Fixed Interest Rate, such prepayment of the
principal balance of this Note, whether in whole or in part, shall
be subject to the following conditions:
(i) Not less than five
(5) days prior to the date upon which Borrower desires to make
such prepayment, Borrower shall deliver to the Bank written notice
of its intention to prepay, which notice shall be irrevocable and
state the prepayment amount and the prepayment date;
(ii) Borrower shall pay to the
Bank, concurrently with such prepayment, a prepayment premium
calculated in accordance with the following paragraph.
(iii) Borrower shall pay to the Bank all
accrued and unpaid interest through the date of such prepayment on
the principal balance being prepaid; and
2
|