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EXHIBIT 10.35
Note No. 0250006199
STANDARD FEDERAL BANK
AMENDED AND RESTATED
PROMISSORY NOTE
(Line of Credit)
$9,500,000.00 Sterling Heights , Michigan
Due Date: March 31, 1997 Dated: February 16, 1995
FOR VALUE RECEIVED, on the Due Date unless accelerated earlier as provided
herein, the undersigned, jointly and severally (collectively, "Borrower"),
promise to pay to the order of Standard Federal Bank, a federal savings bank
("Standard Federal"), at its office set forth below, or at such other place as
Standard Federal may designate in writing, the principal sum of Nine Million
Five Hundred Thousand and 00/100 Dollars ($9,500,000.00) or such lesser amount
as may from time to time be outstanding by reason of having been advanced
hereunder, plus interest as hereinafter provided on all amounts from time to
time outstanding hereunder, all in lawful money of the United States of
America.
The principal outstanding under this Note from time to time shall bear
interest ("Effective Interest Rate"), on a basis of a year of 360 days for the
actual number of days amounts are outstanding hereunder, at a rate per annum
equal to the Wall Street Journal Prime Rate. As used herein the phrase "Wall
Street Journal Prime Rate" shall mean the "Prime Rate" published by the Wall
Street Journal as the base rate on corporate loans posted by at least 75% of
the nation's 30 largest banks as the same may be changed from time to time. If
more than one Prime Rate is published, the highest rate published shall be
deemed the Wall Street Journal Prime Rate. If the publishing of the Wall
Street Journal Prime Rate is discontinued during the term hereof, then the
Effective Interest Rate shall be based upon the index which is published by The
Wall Street Journal in replacement thereof based on similar base rates on
corporate loans or, if no such replacement index is published, the index which,
in Standard Federal's sole determination, most nearly corresponds to the Wall
Street Journal Prime Rate. If, in such event, Standard Federal selects an
index which, in the Borrower's opinion, does not correspond to the Wall Street
Journal Prime Rate, Borrower's sole remedy shall be to prepay this Note in full
without penalty or premium. Until such prepayment has been received by
Standard Federal, the index selected by Standard Federal shall apply for all
purposes of this Note.
It is understood and agreed by Borrower that the Effective Interest
Rate shall be determined by reference to the "Wall Street
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Journal Prime Rate" and not by reference to the actual rate of interest charged
by any particular bank to any particular borrower or borrowers and shall
automatically increase or decrease when and to the extent that the Wall Street
Journal Prime Rate shall have been increased or decreased.
Accrued interest shall be payable on the first day of each month
beginning on March 1, 1995.
This Note is given as evidence of any and all indebtedness of the
Borrower to Standard Federal arising as a result of advances or other credit
which may be made under this Note from time to time in accordance with the
provisions of a Loan Agreement of even date herewith by and between Standard
Federal and the Borrower (the "Loan Agreement"). Any and all indebtedness may
be repaid by the Borrower in whole or in part from time to time prior to the
Due Date. Standard Federal shall, from time to time prior to the Due Date,
make advances to Borrower hereunder upon request therefor by Borrower, provided
that, upon giving effect to such advance: (a) no Event of Default (as
hereinafter defined) and no event which with notice and/or the passage of time
would become an Event of Default shall exist at the time the advance is to be
made; (b) all representations and warranties of Borrower theretofore made are
true and correct; (c) Standard Federal shall not have previously or
concurrently declared all amounts owing hereunder to be immediately due and
payable; (d) the amount requested shall not cause the total amount outstanding
hereunder to exceed the Credit Limit, as defined in the Loan Agreement; and (e)
all other requirements for the making of advances provided for in the Loan
Agreement have been satisfied. The principal amount of indebtedness owing
pursuant to this Note shall change from time to time, decreasing in an amount
equal to any and all payments of principal made by the Borrower and increasing
by an amount equal to any and all advances made by Standard Federal to the
Borrower pursuant to the terms hereof, and the books and records of Standard
Federal shall be conclusive evidence of the amount of principal and interest
owing hereunder at any time. All payments made hereunder shall be applied
first against costs and expenses required to be paid hereunder, then against
accrued interest to the extent thereof and the balance shall be applied against
the outstanding principal amount hereof.
Nothing herein contained, nor any transaction relating thereto, or
hereto, shall be construed or so operate as to require the Borrower to pay, or
charge, interest at a greater rate than the maximum allowed by the applicable
law relating to this Note. Should any interest, or other charges, charged,
paid or payable by the Borrower in connection with this Note, or any other
document delivered in connection herewith, result in the charging,
compensation, payment or earning of interest in excess of the maximum allowed
by applicable law, then any and all such excess shall be and the same is hereby
waived by Standard Federal, and any and all such excess paid shall be
automatically credited against
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and in reduction of the principal due under this Note. If Standard Federal
shall reasonably determine that the Effective Interest Rate (together with all
other charges or payments related hereto that may be deemed interest)
stipulated under this Note is, or may be, usurious or otherwise limited by law,
the unpaid balance of this Note, with accrued interest at the highest rate
permitted to be charged by stipulation in writing between Standard Federal and
Borrower, at the option of Standard Federal, shall immediately become due and
payable.
The Borrower represents and warrants that it is duly organized,
validly existing and in good standing and is duly authorized to make and
perform this Note, which constitutes its valid and binding legal obligation
enforceable in accordance with its terms. All financial data furnished to
Standard Federal in connection with this Note fairly present the financial
condition of the Borrower and its subsidiaries, if any, as of the dates thereof
and there has been no material adverse change in the condition (financial or
otherwise) of the Borrower since such dates.
An Event of Default shall be deemed to have occurred hereunder if any
indebtedness of the Borrower to Standard Federal hereunder is not paid when
due, regardless of whether such indebtedness has arisen pursuant to the terms
of this Note, the Loan Agreement or any mortgage, security agreement, guaranty,
instrument or other agreement executed in conjunction herewith, or if an Event
of Default shall otherwise occur under the Loan Agreement.
Upon the occurrence of any Event of Default, after the giving of any
notice and the expiration of any grace, cure or notice period provided for in
the Loan Agreement, if any, and if no such notice or grace, cure or notice
period is so provided for in the Loan Agreement, then immediately, Standard
Federal may declare the entire unpaid and outstanding principal balance
hereunder and all accrued interest to be due and payable in full forthwith,
without presentment, demand or notice of any kind and may exercise any one or
more of the rights and remedies provided herein or in the Loan Agreement or in
any mortgage, guaranty, security agreement or other document relating hereto or
by applicable law. The remedies provided for hereunder are cumulative to the
remedies for collection of the amounts owing hereunder as provided by law or by
the Loan Agreement, or by any mortgage, guaranty, security agreement or other
document relating hereto. Nothing herein is intended, nor should it be
construed, to preclude Standard Federal from pursuing any other remedy for the
recovery of any other sum to which Standard Federal may be or become entitled
for breach of the terms of this Note or the Loan Agreement, or any mortgage,
guaranty, security agreement or other instrument relating hereto.
Borrower agrees, in case of an Event of Default under the terms of
this Note or under any loan agreement, security or other agreement executed in
connection herewith, to pay all costs of
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Standard Federal for collection of the Note and all other liabilities of
Borrower to Standard Federal and enforcement of rights hereunder, including
reasonable attorney fees and legal expenses including participation in
Bankruptcy proceedings. During any period(s) this Note is in default, or after
the Due Date, or after acceleration of maturity, the outstanding principal
amount hereof shall bear interest at a rate equal to two percent (2.0%) per
annum greater than the interest rate otherwise charged hereunder. If any
required payment is not made within ten (10) days after the date it is due,
then, at the option of Standard Federal, a late charge of not more than four
cents ($.04) for each dollar of the payment so overdue may be charged. In
addition to any other security interests granted to Standard Federal, Borrower
hereby grants Standard Federal a security interest in all of Borrower's bank
deposits, instruments, negotiable documents, and chattel paper which at any
time are in the possession or control of Standard Federal. After the
occurrence of an Event of Default hereunder, Standard Federal may hold and
apply at any time its own indebtedness or liability to Borrower in payment of
any indebtedness hereunder.
Acceptance by Standard Federal of any payment in an amount less than
the amount then due shall be deemed an acceptance on account only, and the
failure to pay the entire amount then due shall be and continue to be an Event
of Default. Upon any Event of Default, neither the failure of Standard Federal
promptly to exercise its right to declare the outstanding principal and accrued
unpaid interest hereunder to be immediately due and payable, nor the failure of
Standard Federal to demand strict performance of any other obligation of the
Borrower or any other person who may be liable hereunder shall constitute a
waiver of any such rights, nor a waiver of such rights in connection with any
future default on the part of the Borrower or any other person who may be
liable hereunder.
Borrower and all endorsers and guarantors hereof, hereby jointly and
severally waive presentment for payment, demand, notice of non-payment, notice
of protest or protest of this Note, diligence in collection or bringing suit,
and hereby consent to any and all extensions of time, renewals, waivers, or
modifications that may be granted by Standard Federal with respect to payment
or any other provisions of this Note, and to the release of any collateral or
any part thereof, with or without substitution. The liability of the Borrower
shall be absolute and unconditional, without regard to the liability of any
other party hereto.
This Note is executed pursuant to a Loan Agreement, dated September
15, 1994, as amended by a First Amendment to Loan Agreement of even date
herewith, and is secured by a Security Agreement, dated September 15, 1994.
Reference is hereby made to such documents for additional terms relating to the
transaction giving rise to this Note, the security given for this Note and
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additional terms and conditions under which this Note matures, may be
accelerated or prepaid.
Advances hereunder may be requested by telephone, in writing or in any
other manner acceptable to Standard Federal. Borrower understands and agrees
that any telephone conversation with Standard Federal may be recorded for
accuracy.
BORROWER:
MCCLAIN INDUSTRIES, INC., a Michigan
corporation
By:
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E. James Zabinski
Its: Treasurer
38-1867649
Taxpayer Identification Number
MCCLAIN OF GEORGIA, INC., a Georgia
corporation
By:
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Carl L. Jaworski
Its: Secretary
58-1738825
Taxpayer Identification Number
SHELBY STEEL PROCESSING COMPANY, a
Michigan corporation
By:
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Carl L. Jaworski
Its: Secretary
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38-2205216
Taxpayer Identification Number
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MCCLAIN TUBE COMPANY d/b/a QUALITY
TUBE, a Michigan corporation
By:
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E. James Zabinski
Its: Treasurer
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Taxpayer Identification Number
MCCLAIN INDUSTRIES OF OHIO, INC., a
Michigan corporation
By:
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E. James Zabinski
Its: Treasurer
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Taxpayer Identification Number
Standard Federal Bank, a
federal savings bank
2600 West Big Beaver Road
Troy, Michigan 48084
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