PROMISSORY NOTE
Exhibit 10.4
PROMISSORY NOTE
$10,500,000.00 |
| Promissory Note Date: November 30, 2011 |
Date of Advance: December 2, 2011 |
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FOR VALUE RECEIVED, STELLARIS LLC, a limited liability company organized under the laws of the State of Nevada and having a principal place of business at 26000 Commercentre Drive, Lake Forest, California 92630 and ARB, INC., a corporation organized under the laws of the State of California and having a principal place of business at 26000 Commercentre Drive, Lake Forest, California 92630 (Borrower) hereby promises to pay to the order of FIFTH THIRD BANK, an Ohio banking corporation, for itself and as agent for any affiliate of Fifth Third Bancorp (together with its successors and assigns, the Lender) the principal amount of Ten Million Five Hundred Thousand and 00/100 ($10,500,000.00), with interest at the Interest Rate (as defined below) and all other Obligations on or before December 15, 2016 (Maturity Date) pursuant to the Loan Agreement (as defined below).
Lender and Borrower have entered into that certain Master Loan and Security Agreement dated as of August 31, 2009 (the Loan Agreement), pursuant to which Lender has agreed to make the Loan to Borrower. The Obligations of Borrower are secured by the Collateral as provided in the Loan Agreement and this Note shall be subject to the terms and conditions of the Loan Agreement. Capitalized terms used herein and not otherwise defined shall have the meaning attributed thereto in the Loan Agreement. This Note relates to the Equipment described on Schedule A hereto.
Borrower agrees that Lender may insert the date(s) of Advance (above) after Borrower executes this Promissory Note as the date(s) on which the proceeds of this Note are disbursed by Lender.
As used herein, Interest Rate shall mean the percentage per annum equal to two and 63/100 percent (2.63%); provided, however, that (A) such Interest Rate is based on an interest rate swap rate for a term most closely corresponding to the maturity of this Note as quoted in the Bloomberg SWAP Rate report) as of the date of this Note and (B) such Interest Rate may be adjusted by Lender based upon a corresponding increase in the interest rate swap rate quoted in such Release as in effect on the date of the Advance. Lender will provide Borrower with written notice of any such adjustment. Interest shall be computed on the basis of a year of 360 days consisting of twelve 30-day months, and shall accrue on the outstanding principal amount hereunder from and including the date each Advance is made to but excluding the date the entire principal amount hereunder is paid in full.
Lender may charge, and Borrower agrees to pay on the Advance date, a note processing fee in the amount of $500.00. Lender may deduct the amount of the note processing fee from the proceeds of this Note or debit any deposit account of Borrower with Lender to collect the note processing fee.
Except as otherwise provided in the Loan Agreement, principal and interest due hereunder shall be payable as follows:
Principal and interest shall be payable in 60 equal monthly installments, each on the 15th day of each calendar month, of $187,154.20 commencing on the 15th day of January, 2012, with the entire unpaid principal amount hereof, together with all accrued and unpaid interest, charges, fees or other Advances, if any, due on the Maturity Date. Interest that accrues from the date of each Advance through but not including the above payment commencement date shall be payable in arrears on the first day of the calendar month following the date of Advance.
Borrower may prepay this Note only (1) pursuant to Section 8 of the Loan and Security Agreement following the occurrence of an Event of Loss; or (2) from and after the first (1st) anniversary of the date the Loan is made hereunder, Borrower may prepay, in whole but not in part, the principal outstanding hereunder by paying to Lender such outstanding principal, together with all accrued and unpaid interest thereon at the Interest Rate and other Obligations, plus, as liquidated damages for the cost of making funds available to Borrower hereunder and not as a penalty, a prepayment premium equal to the applicable corresponding percentage below multiplied by the principal outstanding at the time of prepayment:
Date of Prepayment (from Date of Advance): |
| Premium |
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Prior to the 1st anniversary |
| 3.00 | % |
On or after the 1st anniversary, but prior to the 2nd anniversary |
| 2.00 | % |
On or after 2nd anniversary, but prior to the 3rd anniversary |
| 1.00 | % |
On or after 3rd anniversary |
| 0.00 | % |
The first anniversary date occurs on the date, which is twelve (12) months from the date of the Advance.
Upon the occurrence of an Event of Default, Lender shall have all the rights and remedies specified in the Loan Agreement.
Borrower waives presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note.
This Note shall be governed by and construed in accordance with the laws of the State of Ohio. Any judicial proceeding arising out of or relating to this Note may be brought in any court of competent jurisdiction in Hamilton County, Ohio and each of the parties hereto (i) accepts the nonexclusive jurisdiction of such courts and any related appellate court and agrees to be bound by any judgment rendered by any such court in connection with any such proceeding and (ii) waives any objection it may now or hereafter have as to the venue of any such proceeding brought in such court or that such court is an inconvenient forum. EACH OF THE BORROWER AND LENDER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING ARISING OUT OF OR IN ANY WAY RELATING TO THIS NOTE.
All notices delivered hereunder shall be made and delivered in accordance with the terms of the Loan Agreement.
Borrower acknowledges and agrees that time is of the essence with respect to its performance under this Note. Any failure of Lender to require strict performance by Borrower or any waiver by Lender of any provision herein shall not be construed as a consent or waiver of any provision of this Note. This Note shall be binding upon, and inure to the benefit of, the parties hereto, their permitted successors and assigns; provided, however that Borrower may not assign or transfer any of its rights, interest or obligations hereunder without the prior written consent of Lender.
Notwithstanding any provision to the contrary in this Note, in no event shall the interest rate charged on this Note exceed the maximum rate of interest permitted under applicable state and/or federal usury law. Any payment of interest that would be deemed unlawful under applicable law for any reason shall be deemed received on account of, and will automatically be applied to reduce, the principal sum outstanding and any other sums (other than interest) due and payable to Lender under this Note, and the provisions hereof shall be deemed amended to provide for the highest rate of interest permitted under applicable law.
Any provision of this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability shall not invalidate or render unenforceable such provision in any other jurisdiction. Captions are intended for convenience or reference only, and shall not be construed to define, limit or describe the scope or intent of any provisions hereof.
IN WITNESS WHEREOF, the Borrower has executed this Note as of the 30th day of November, 2011.
| BORROWER: | |
| STELLARIS LLC | |
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| By: | /s/ Alfons Theeuwes |
| Name: | ALFONS THEEUWES |
| Title: | CFO |
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| ARB, INC. | |
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| By: | /s/ Alfons Theeuwes |
| Name: | ALFONS THEEUWES |
| Title: | CFO |
SCHEDULE A
TO
PROMISSORY NOTE DATED NOVEMBER 30, 2011
DESCRIPTION OF EQUIPMENT
(SEE ATTACHED)
©2008 Fifth Third Bancorp
SCHEDULE A TO RELEASE AND TERMINATION OF SECURITY INTEREST by The PrivateBank and Trust Company
YEAR |
| DESCRIPTION |
| SERIAL NUMBER |
| LOCATION 11/7/11 | |
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2004 |
| KENWORTH NATL 23 TON |
| 1NKDLU0XX4R052572 |
| CARSON/CA-1436804 |
|
2004 |
| KENWORTH NATL 23 TON |
| 1NKDLU0X14R052573 |
| LONG BEACH/CA-1329115C |
|
2004 |
| KENWORTH NATL 23 TON |
| 1NKDLU0X34R052574 |
| SANTA CLARA/CA-0329053C |
|
2004 |
| KENWORTH NATL 23 TON |
| 1NKDLU0X54R052575 |
| RIVERSIDE/CA-1328055R |
|
2004 |
| KENWORTH NATL 23 TON |
| 1NKDLU0X74R052576 |
| SANTA CLARA/CA-0329053C |
|
2004 |
| FORD F-650 FUEL/LUBE |
| 3FRWF65384V610534 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| FORD F-750 WATER TRUCK |
| 3FRXF75T14V670486 |
| SPRINGVILLE/CA-1331193 |
|
2004 |
| FORD F-750 WATER TRUCK |
| 3FRXF75T34V670487 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRPF75E67V518175 |
| VISTA/CA-1328031R |
|
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRPF75E57V518183 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRXF75E07V509519 |
| LODI/CA-06362926 |
|
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRXF75E57V509502 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRNF75E27V475915 |
| EL SEGUNDO/CA-1436781 |
|
2007 |
| FORD F-750XL WATER TRUCK |
| 3FRNF75E07V475914 |
| CARSON/CA-1436751 |
|
2004 |
| KENWORTH T800 TRACTOR 3AXL |
| 1XKDDB0X94R052568 |
| KETTLEMAN/CA-102 |
|
2005 |
| PETERBILT 378 TRACTOR 3AXL |
| 1XPFDB0X65D839673 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2002 |
| OTTAWA 30 MULE TRACTOR 3AXL |
| 304961 |
| LODI/CA-06362926 |
|
2004 |
| KENWORTH T-800 WATER TRUCK |
| 1NKDLU0XX4R052569 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| KENWORTH T-800 WATER TRUCK |
| 1NKDLU0X64R052570 |
| LONG BEACH/CA-1329076C |
|
2004 |
| KENWORTH T-800 WATER TRUCK |
| 1NKDLU0X84R052571 |
| SANTA CLARA/CA-0629053C |
|
2003 |
| KENWORTH T800 6X6 F/B TRUCK |
| 1NKDMT0X43R708562 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2003 |
| KENWORTH T800 6X6 LUBETRUCK |
| 1NKDMT0X63R708563 |
| TIPTON/CA-1328067R |
|
2003 |
| KENWORTH T800 6X6 FUELTRUCK |
| 1NKDMT0X83R708564 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| KALMAR DCD250 55K FORKLIFT |
| T33104.0544 |
| EL SEGUNDO/CA-1436781 |
|
2007 |
| KALMAR DCD250 55K FORKLIFT |
| T34108.0924 |
| EL CENTRO/CA-1435701 |
|
1998 |
| CAT D7G TACK TRACTOR |
| 65V08359 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
1989 |
| CAT 561D PIPELAYER |
| 54X00767 |
| GLENHELEN/CA-103 |
|
1989 |
| CAT 561D PIPELAYER |
| 54X00770 |
| PASADENA/TX-102 | 2813 SHAVER STREET, 77502 |
1989 |
| CAT 561D PIPELAYER |
| 54X00780 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
1989 |
| CAT 561D PIPELAYER |
| 54X00781 |
| SAN PEDRO/CA-1330276 |
|
1982 |
| CAT 572G PIPELAYER |
| 40U00951 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
1988 |
| CAT 583K PIPELAYER W/WINCH |
| 78V01151 |
| MONTROSE/PA-102 | 17860 STATE ROUTE 706-18801 |
1988 |
| CAT 583K PIPELAYER W/WINCH |
| 78V01152 |
| MONTROSE/PA-102 | 17860 STATE ROUTE 706-18801 |
1988 |
| CAT 583K PIPELAYER W/WINCH |
| 78V01154 |
| MONTROSE/PA-102 | 17860 STATE ROUTE 706-18801 |
1988 |
| CAT 583K PIPELAYER W/WINCH |
| 78V01162 |
| PASADENA/TX-102 | 2813 SHAVER STREET, 77502 |
2008 |
| CAT 583T PIPELAYER |
| CMX00325 |
| KLAMITH FALLS/OR-102 | 262 S. 6TH ST-97603 |
2008 |
| CAT 583T PIPELAYER |
| CMX00326 |
| KLAMITH FALLS/OR-102 | 262 S. 6TH ST-97603 |
2008 |
| CAT 583T PIPELAYER |
| CMX00327 |
| MONTROSE/PA-102 | 17860 STATE ROUT 706-18801 |
2008 |
| CAT 583T PIPELAYER |
| CMX00328 |
| CORONA/CA-213 |
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2008 |
| CAT 583T PIPELAYER |
| CMX00412 |
| MONTROSE/PA-102 | 17860 STATE ROUT 706-18801 |
2000 |
| VERMEER T758 TRENCHER |
| 1VRN260P8Y1000141 |
| CORONA/CA-213 |
|
2008 |
| TRENCOR 1360 TRENCHER |
| 287 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| CAT 330DL EXCAVATOR |
| MWP01623 |
| RIVERSIDE/CA-1330277 |
|
2008 |
| VERMEER D100X120 NAVIGATOR |
| 1VR23304281000414 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
2009 |
| AMERICAN AUG 60 BORING MACH |
| AB60-1270802 |
| KLAMITH FALLS/OR-102 |
|
2010 |
| LANEY 4DT110 BORING MACH |
| 050361 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
UNK |
| OMEGA D75 PUMP WITH DETROIT |
| ###-###-#### |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2000 |
| TRIFLO 10000GAL MUD SYSTEM |
| TFI-MF5047 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2000 |
| KEMTRON 350T MUD SYSTEM |
| 5CNPF2029YC000426 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
UNK |
| MUD MOTOR 6 3/4 COMMANDER |
| 675-609 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
2007 |
| GRUNDORAM 10 HAMMER |
| RF2700231503 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
UNK |
| 140HARCRO TRACK RIG #1 H.D. |
| HTROO1 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
1995 |
| 160 ARB TRACK RIG 2 |
| ATR02 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
UNK |
| CRC 6-20 BENDING MACHINE |
| PB20140 |
| BAKERSFIELD/CA-310 | 3600 S. PEGASUS DRIVE - 93006 |
UNK |
| CRC 6-20 BENDING MACHINE |
| PB20177 |
| TUPMAN/CA-02345713C |
|
1994 |
| CRC 6-20 BENDING MACHINE |
| PB20103 |
| EL CENTRO/CA-1436701 |
|
2002 |
| SUP 22-36 BENDING MACHINE |
| P-133 |
| ANAHEIM/CA-132806SR |
|
2004 |
| CRC 16-30BENDING MACHINE |
| PB16-30194 |
| PITTSBURG/CA-410 | 1875 LOVERIDGE ROAD-94565 |
1999 |
| GROVE RT880 80TON CRANE |
| 220980 |
| SANTA FE SPRINGS/CA-1330847C |
|
2007 |
| TEREX RT780 80TON CRANE |
| 14660 |
| LODI/CA-06362926 |
|
2007 |
| MILLER BIG40 400 WELDER |
| LH023890 |
| MAXWELL/CA-06362535C |
|
2007 |
| MILLER BIG40 400 WELDER |
| LH024624 |
| CARSON/CA-217 |
|
2007 |
| MILLER BIG40 400 WELDER |
| LH023518 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| MILLER BIG40 400 WELDER |
| LH023889 |
| SPRINGVILLE/CA-1331193 |
|
2008 |
| MILLER BIG40 400 WELDER |
| LH023892 |
| EL CENTRO/CA-1435701 |
|
2008 |
| MILLER BIG40 400 WELDER |
| LH024626 |
| LODI/CA-06362926 |
|
2008 |
| MILLER BIG40 400 WELDER |
| LH023514 |
| TUPMAN/CA-02345713C |
|
2008 |
| MILLER BIG40 400 WELDER |
| LH023517 |
| BAKERSFIELD/CA-310 |
|
2008 |
| MILLER BIG40 400 WELDER |
| LH023895 |
| TUPMAN/CA-02345713C |
|
2007 |
| MILLER NT450 6 PACK WELDER |
| 159C,111C,158C,409 |
| EL CENTRO/CA-1436701 |
|
2007 |
| MILLER NT450 6 PACK WELDER |
| 158C,119C,110C,120 |
| EL CENTRO/CA-1436701 |
|
2007 |
| MCELROY 6-18 FUSION MACH |
| 22684 |
| EL SEGUNDO/CA-1436781 |
|
2007 |
| MCELROY 6-12FUSION MACH |
| A1855502 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2005 |
| MIDWESTERN HTU500 FILL&TEST |
| 05-06-124 |
| SANTA CLARA/CA-0629053C |
|
2007 |
| SOFF-CUT 750 PRLR CON. SAW |
| 2264 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2007 |
| CHEMGROUT CG550-030-GH PUMP |
| 088614550030GH |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2001 |
| ASPHALT ZIPPER 480 28 DR |
| 100710 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| ASPHALT ZIPPER AZ4802 48DR |
| 109FS08234U022686 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| ASPHALT ZIPPER AZ4802 48DR |
| 48S00126 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| ASPHALT ZIPPER AZ4802 48DR |
| 48S00127 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
UNK |
| 40-TON WINCH SWAGELINING 16-48 |
| 001 |
| CORONA/CA-213 |
|
UNK |
| 20 TON GRUNDOMAT WINCH |
| W20206XKB13213 |
| LAKE FOREST/CA-210 | 26000 COMMERCECENTRE DRIVE, 92630 |
UNK |
| 20 TON GRUNDOMAT WINCH |
| W20206VKB13105 |
| LAKE FOREST/CA-209 | 26000 COMMERCECENTRE DRIVE, 92630 |
2004 |
| METSO JAW PLANT |
| 3514 |
| HOMELAND/CA |
|
2003 |
| SCREEN PLANT |
| 3001 |
| HOMELAND/CA |
|
2002 |
| SCREEN PLANT |
| 50823053 |
| HOMELAND/CA |
|
2009 |
| CONE CRUSHER |
| 41100598 |
| HOMELAND/CA |
|
2004 |
| SCREEN FEED CONVEYOR |
| CR48-031 |
| HOMELAND/CA |
|
2001 |
| CONE FEED CONVEYOR |
| 3660-5287 |
| HOMELAND/CA |
|
2006 |
| SHUTTLE CONVEYOR |
| SC3660-17492 |
| HOMELAND/CA |
|
2008 |
| SHUTTLE CONVEYOR |
| SC3660-17493 |
| HOMELAND/CA |
|
2008 |
| SHUTTLE CONVEYOR |
| SC3660-17495 |
| HOMELAND/CA |
|
2009 |
| SHUTTLE CONVEYOR |
| SC3660-17500 |
| HOMELAND/CA |
|
2003 |
| SUPERIOR RADIAL STACKER |
| 5859-04 |
| HOMELAND/CA |
|
2009 |
| SPIRALING RADIAL STACKER |
| 100-30T-05-2664 |
| HOMELAND/CA |
|
2005 |
| NESCO DUST CONTROL |
| 322421 |
| HOMELAND/CA |
|
2006 |
| MOTOR CONTROL CENTER |
| S95026 |
| HOMELAND/CA |
|