Line of Credit Agreement between EPIQ Systems, Inc. and Gold Bank dated June 20, 2001

Contract Categories: Business Finance › Credit Agreements
Summary

EPIQ Systems, Inc. and Gold Bank entered into a line of credit agreement on June 20, 2001, allowing EPIQ to borrow up to $2,500,000 until June 20, 2002. EPIQ can request advances under certain conditions and must repay according to a promissory note. The agreement includes covenants for record-keeping and lender inspection rights, and may be terminated by the bank if EPIQ defaults. Both parties affirm that no unwritten agreements exist. The agreement is governed by the law of the lender's state.

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EX-10.2 5 a2056152zex-10_2.txt LINE OF CREDIT
EXHIBIT 10.2 - ----------------------------------------------- --------------------------------------------- -------------------------------------- EPIQ SYSTEMS, INC. GOLD BANK Line of Credit No. 1031000029 - ---------------------------------------- ------------------ 501 KS AVE 11301 NALL AVENUE Date JUNE 20, 2001 - ---------------------------------------- -------------------------------- KANSAS CITY, KS 66105 LEAWOOD, KS 66211 Max. Credit Amt. 2,500,000.00 - ---------------------------------------- -------------------- Loan Ref. No. 1031000029 - ---------------------------------------- --------------------- 48-1056429 App# 131001008550 BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS "I" includes each borrower above, "You" means the lender, its successors jointly and severally. and assigns. - ----------------------------------------------- --------------------------------------------- -------------------------------------- You have extended to me a line of credit in the AMOUNT of TWO MILLION FIVE HUNDRED THOUSAND AND NO/100.......................... $ 2,500,000.00 ---------------------------------------------------------------------------------- -------------------------------------- You will make loans to me from time to time until 3:00 p.m. on JUNE 20, 2002 . Although the line of credit expires on that date, I will remain obligated to perform all my duties under this agreement so long as I owe you any money advanced according to the terms of this agreement, as evidenced by any note or notes I have signed promising to repay these amounts. This line of credit is an agreement between you and me. It is not intended that any third party receive any benefit from this agreement, whether by direct payment, reliance for future payment or in any other manner. This agreement is not a letter of credit. 1. AMOUNT: This line of credit is: /X/ OBLIGATORY: You may not refuse to make a loan to me under this line of credit unless one of the following occurs: a. I have borrowed the maximum amount available to me; b. This line of credit has expired; c. I have defaulted on the note (or notes) which show my indebtedness under this line of credit; d. I have violated any term of this line of credit or any note or other agreement entered into in connection with this line of credit; e. ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------- /X/ DISCRETIONARY: You may refuse to make a loan to me under this line of credit once the aggregate outstanding advances equal or exceed $ ---------------------------- ------------------------ Subject to the obligatory or discretionary limitations above, this line of credit is: /X/ OPEN-END (Business or Agricultural only): I may borrow up to the maximum amount of principal more than one time. / / CLOSED-END: I may borrow up to the maximum only one time. 2. PROMISSORY NOTE: I will repay any advances made according to this line of credit agreement as set out in the promissory note, I signed one JUNE 20, 2001 , or any note(s) I sign at a later time which represent advances under this agreement. The note(s) set(s) out the terms relating to maturity, interest rate, repayment and advances. If indicated on the promissory note, the advances will be made as follows: ALL FUTURE ADVANCES MUST BE REQUESTED IN PERSON, IN WRITING ------------------------------------------------------------------------------------------------------------------------------- OR BY PHONE AND ARE SUBJECT TO APPROVAL OR DISAPPROVAL AT THE ------------------------------------------------------------------------------------------------------------------------------- SOLE DISCRETION OF GOLD BANK MANAGEMENT ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- 3. RELATED DOCUMENTS: I have signed the following documents in connection with this line of credit and note(s) entered into in accordance with this line of credit: /X/ security agreement dated JUNE 20, 2001 -------------------------------------------- / / -------------------------------------------- / / mortgage dated ------------------------------------------------------- / / -------------------------------------------- / / guaranty dated ------------------------------------------------------- / / -------------------------------------------- 4. REMEDIES: If I am in default on the note(s) you may: a. take any action as provided in the related documents; b. without notice to me, terminate this line of credit. By selecting any of these remedies you do not give up your right to later use any other remedy. By deciding not to use any remedy should I default, you do not waive your right to later consider the event a default, if it happens again. 5. COSTS AND FEES: If you hire an attorney to enforce this agreement I will pay your reasonable attorney's fees, where permitted by law. I will also pay your court costs and costs of collection, where permitted by law. 6. COVENANTS: For as long as this line of credit is in effect or I owe you money for advances made in accordance with the line of credit, I will do the following: a. maintain books and records of my operations relating to the need for this line of credit; b. permit you or any of your representatives to inspect and/or copy these records; c. provide to you any documentation requested by you which support the reason for making any advance under this line of credit; d. permit you to make any advance payable to the seller (or seller and me) of any items being purchased with that advance; e. ---------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 7. NOTICES: All notices or other correspondence with me should be sent to my address stated above. The notice or correspondence shall be effective when deposited in the mail, first class, or delivered to me in person. 8. MISCELLANEOUS: This line of credit may not be changed except by a written agreement signed by you and me. The law of the state in which you are located 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. - ----------------------------------------------------------------------------------------------------------------------------------- NOTICE TO BORROWER: This written agreement is the final expression of the agreement between you and the Lender, and as such it may not be contradicted by evidence of any prior oral agreement or of a contemporaneous oral agreement between you and the Lender. ADDITIONAL TERMS: AFFIRMATION: By signing or initialing here, Borrower & Lender affirm that no unwritten oral agreement between them exists. x x /s/ TOM OLOFSON -------------------------------- -------------------- Lender Borrower - --------------------------------------------------------------------------------------------------- FOR THE LENDER SIGNATURES: I AGREE TO THE TERMS OF THIS LINE OF CREDIT. I HAVE RECEIVED A COPY ON TODAY'S DATE. EPIQ SYSTEMS, INC. - ----------------------------------------------------- ------------------------------ JULIE L. HOOK Title VICE PRESIDENT /s/ TOM W. OLOFSON - ----------------------------------------------------- ------------------------------ TOM W. OLOFSON, CEO
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