RENEWAL TERM NOTE
$480,000.00 Columbus, Georgia
September 30, 1999
FOR VALUE RECEIVED, the undersigned GLENN MCCLENDON TRUCKING COMPANY,
INC., an Alabama corporation, successor by merger to MCCLENDON SERVICES
CORPORATION (hereinafter called "Borrower"), promises to pay to the order of
COLUMBUS BANK AND TRUST COMPANY, a Georgia banking Corporation (herein, together
with any assignee or holder hereof, called "Bank"), at Bank's principal place of
business in Columbus, Georgia, or at such other place as Bank may designate and
notify the undersigned, the principal sum of FOUR HUNDRED AND EIGHTY THOUSAND
DOLLARS ($480,000.00), together with interest from date on the unpaid balance of
said principal sum at the rate specified hereinbelow, together with all costs of
collection, including reasonable attorneys fees if collected by law or through
an attorney at law.
The unpaid balance of said principal sum from time to time outstanding
shall bear interest at the "Floating Rate," meaning a per annum rate of simple
interest which at all times shall be two percent (2%) more than, and fluctuating
automatically at that level with, the Prime Rate of Columbus Bank and Trust
Company (said Prime Rate being the index, base or reference rate from time to
time established and used by said bank to fix interest rates at which loans are
made to its various customers, which loans may be made by said bank at, above or
below said Prime Rate). As of the date hereof, said Prime Rate is 8.25% per
annum and said Floating Rate is 10.25% per annum. Interest shall be computed
daily, using the Prime Rate in effect and the principal balance outstanding at
the close of business on each such day, on the basis of a 360-day year.
Interest only shall be due and payable on November 1, 1999, and on the
first day of each consecutive month thereafter through and including October
1,2000. Thereafter, principal and accrued interest thereon shall be due and
payable in 47 equal consecutive monthly installments, each in the amount of
Twelve Thousand Two Hundred Thirty-Five Dollars ($12,235), the first of said
installments to be due and payable on November 1, 2000, and a like installment
to be due and payable on the first day of each consecutive month thereafter
through and including September 1,2004. The entire principal balance hereof and
all accrued and unpaid interest thereon, if not sooner paid, shall be due and
payable on October 1, 2004, the Maturity Date.
This Note represents a renewal of a loan made pursuant to that certain
Loan Agreement and Third Amendment to Amended and Restated Loan and Line of
Credit Agreement dated December 1, 1998, to which Borrower and Bank are parties
("Agreement"). The loan evidenced by said Agreement and the other Loan Documents
as defined therein had a maturity date of April 30, 1999, which maturity date,
by mutual agreement between Bank and Borrower, consented to by the Guarantors
identified hereinbelow, was extended to September 30, 1999, the date hereof.
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This Note is secured by a Mortgage dated December 1, 1998 ("Mortgage")
whereby Bank has been granted security title to and security interest in the
improved real property located in Chambers County, Alabama, as described in said
Mortgage, and is further secured by a Guaranty Agreement dated December 1, 1998,
from Hugh F. McClendon and James W. McClendon ("Guarantors") to Bank. This Note
is also secured by an Assignment of Rents and Leases from Borrower to Bank
pertaining to the real property described in the aforesaid Mortgage. Both said
Mortgage and said Assignment of Rents and Leases are recorded in the office of
the Judge of Probate of Chambers County, Alabama.
Borrower shall have the right, at any time, to pay any part or all of
the unpaid principal balance of this Note in advance of its due date without
premium or penalty. Each prepayment, when paid, shall be applied first to
accrued interest and then to the unpaid principal balance hereof.
A late charge amounting to 5% of any required payment of principal or
interest due hereunder not made within ten (10) days after its due date may be
assessed at Bank's option, but not more thai~i once for the same delinquency.
Contemporaneously herewith, Borrower has paid to Bank the sum of Two
Hundred Fifty Dollars ($250) as a loan renewal fee, and Borrower acknowledges
that said loan renewal fee has been fully earned and is non-refundable.
Time is of the essence hereof. In the event any sum payable hereon is
not paid when due, or in the event of any breach or default on the part of
Borrower under any agreement of the Borrower set forth in the Agreement or in
any of the Loan Documents therein described, which shall not have been cured
within such if any applicable cure period as may be specified therein, then, and
in any such event and at any time thereafter, at Bank's option, and without
further demand or notice of any kind, the entire principal balance hereof at the
time remaining unpaid, together with all interest then accrued hereon and
unpaid, may be declared and thereupon shall be and become immediately due and
payable, and shall bear interest thenceforth at the Default Rate. For the
purposes of this Note, the Default Rate shall mean the Floating Rate plus three
percent (3%).
This Note represents a loan and extension of credit to Borrower made
by Bank at and from its principal place of business in Columbus, Georgia, and
shall be governed by and construed in accordance with the laws of the State of
Georgia.
Borrower hereby expressly waives demand, presentment for payment,
protest, notice of protest, and notice of nonpayment or dishonor.
Borrower acknowledges that this Note is being executed and delivered
in renewal of the loan described in the Agreement pursuant to Section 11 i) of
the Agreement. Guarantors, each acknowledging that the renewal evidenced hereby
of the loan made by Borrower under the terms of the Agreement is to the benefit
of each of them as the predominant shareholders of the Borrower, have joined in
the execution of this Note to
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evidence said acknowledgment, to consent to the terms and provisions hereof and
to reconfirm the applicability of their Guaranty as defined in the Agreement to
the indebtedness evidenced by this Note.
IN WITNESS WHEREOF, Borrower and Guarantors have executed and
delivered this Note, under seal, as of the day and year first above written.
BORROWER:
GLENN McCLENDON TRUCKING COMPANY, INC.
By: /s/ James W. McClendon
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President
(Corporate Seal)
GUARANTORS:
/s/ James W. McClendon (L.S.)
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JAMES W. McCLENDON
/s/ Hugh F. McClendon (L.S.)
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HUGH F. McCLENDON
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