Exhibit 10.2
PROMISSORY NOTE
$ 254,250.00 Date August 13 , 1997
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Office 512
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Spurlock Adhesives, Inc. (the "Borrower"), for value received, promises to pay
to the order of KEYBANK OF NEW YORK (the "Bank") the sum of Two Hundred
Fifty-Four Thousand Two Hundred Fifty Dollars ($254,250.00) (the "Principal") at
the Bank's main office or at any branch office at the rate and according to the
terms indicated below (check applicable payment arrangement):
1. Rate. The Borrower shall pay interest at the rate indicated below (the
"Interest Rate"). Interest shall be computed on the basis of a 360 day year.
This means that each day a periodic rate is calculated by dividing the Interest
Rate by 360; this daily rate is then applied to the outstanding balance to
determine each day's interest.
a. | | A fixed Interest Rate of ___ percent per year.
b. |X| A variable Interest Rate equal to the Base Rate (the
"Index") plus a margin of 0.00 percent per year. THE
INDEX IS DEFINED ON THE BACK OF THIS NOTE. The Interest
Rate will change without notice to the Borrower:
|X| each time the Index changes.
| | _______________ starting ________________.
At the present time, the Index is 8.50 percent and the
Interest Rate is 8.50 percent.
2. Repayment Terms. The Borrower will repay this Note in accordance with the
schedule checked as follows:
a. |_| Demand. On Demand, the Borrower will pay the Principal with interest
from this date until the Principal is fully repaid. Although the
Principal and interest continue to be payable on Demand, the Borrower
agrees to pay accrued interest on the ______ day of each ____________
hereafter until this Note is paid in full.
b. |X| Time. On September 12, 1997, (the "Due Date"), the Borrower will pay
the Principal plus accrued interest. After the Due Date, the Borrower
will pay additional interest on any unpaid Principal at the interest
rate.
c. | | Discount. On ________, 19___, (the "Due Date"), the Borrower will pay
the Principal. If this repayment option is selected, the Bank is
taking interest in advance by deducting it from the Principal. For
Discount loans "Principal" includes the loan proceeds plus the
interest taken in advance. After the Due Date, the Borrower will pay
additional interest on any unpaid amount at ________.
d. | | Term Payments. The Borrower will pay the Principal with interest from
today until payment in full of all amounts due according to the
schedule indicated below. If the following box is checked |_|, the
Borrower will pay a late charge of _____% of any payment that is more
than ______ days late.
i. _________ consecutive ___________ payments of accrued interest
commencing on ________, 19___ and payable on the same date of
each successive calendar ___________ thereafter plus
__________ consecutive ________ Principal payments of
$________ each, commencing on ________, 19___, and payable on
the same date of each successive ________ thereafter and a
final Principal payment of $________ due on ________, 19___,
when all unpaid interest and principal shall be due and
payable.
ii. ______ consecutive ___________ Principal and interest payments
of $________ each, commencing on ________, 19___, and payable
on the same date of each successive _____________ thereafter
until ________, 19___, when the remaining unpaid Principal and
interest shall be due and payable. Additionally, an
interest-only payment shall be due on ________, 19___. If this
is a variable Interest Rate note and any ____ payment is
insufficient to pay all accrued interest, the Borrower will
pay any such insufficiency on demand. If the Interest Rate is
variable, the Bank will adjust the payment schedule each ____
starting ________, 19___, to an amount that would amortize the
Principal balance due on this Note in equal ________ payments
over the remaining term at the Interest Rate then in effect.
iii. ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
3. Security. To protect the Bank if the Borrower defaults on this Note, the
Borrower hereby pledges and grants the Bank a security interest in the following
property (the "Collateral"):
________________________________________________________________________________
________________________________________________________________________________
The security interest granted above is subject to and includes all the
provisions of a Security Agreement dated ________ and/or, in the event real
property is being used as security, a mortgage dated ________.
4. Term Loan Agreement. If the following box is checked |_|, this Note is
executed under the terms of a Term Loan Agreement or Line of Credit Agreement
dated ________ 19___.
5. General. If the following box is checked |X|, the Borrower represents and
warrants that this Note evidences a loan for business or commercial purposes.
The Borrower agrees that the provisions on the reverse side of this document
constitute a part of this Note. By signing this Note, the Borrower agrees to be
legally bound to all the terms, promises, and provisions contained in it.
Spurlock Adhesives, Inc.
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Name (please print) Name (please print)
/s/ Phillip S. Sumpter
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Signature Signature
P.O. Box 8, Waverly, VA 23890
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Address Address