Promissory Note between Texas Timberjack, Inc. and BancorpSouth Bank dated April 12, 2002

Contract Categories: Business Finance › Note Agreements
Summary

Texas Timberjack, Inc. has borrowed $1,500,000 from BancorpSouth Bank under a promissory note dated April 12, 2002. The loan is to be repaid in 24 monthly installments of $66,532.65 each, with the final payment due on April 12, 2004. The loan carries a fixed interest rate of 6% per year and is secured by the borrower's inventory, except for parts inventory. The agreement represents the full understanding between the parties, with no other oral agreements in effect.

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EX-10.5 7 dex105.txt PROMISSORY NOTE Exhibit 10.5
============================================================================================= TEXAS TIMBERJACK, INC. BANCORPSOUTH BANK Loan Number 265000146873 6004 S US HWY 59 501 SOUTH WASHINGTON ----------------- LUFKIN, TX 75637 MARSHALL, TX 75670 Date 4/12/2002 ----------------------- Maturity Date 4/12/2004 -------------- Loan Amount $ $1,500,000.00 ---------------- Renewal Of ----------------- BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS "I" includes each borrower "You" means the lender, above, joint and severally. its successors and assigns. =============================================================================================
For value received, I promise to you, or your order, at your address listed above the PRINCIPAL sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND 00 ---------------------------------------------------- CENTS Dollars $ $1,500,000.00 - ------ ----------------- [X] Single Advance: I will receive all this principal sum on 4/12/2002. -------------------- No additional advances are contemplated under this note. [ ] Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On ----------------------------------- I will receive the amount of $ and future --------------------------------- principle advances are contemplated. Conditions: The condition for future advances are ------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- [ ] Open End Credit : You and I agree that I may borrow up to the maximum amount of principal more than one time. This feature is subject to all other conditions and expires on . ---------------------------------- [ ] Closed End Credit: You and I agree that I may borrow up to the maximum only one time (and subject to all other condition). INTEREST: I agree to pay interest on the outstanding principal balance from 4/12/2002 at the rate of 6.000 % per year until 4/12/2002. - --------- ----- --------- [ ] Variable Rate: This rate may change as stated below. [ ] Index Rate: The future rate will be the following index rate: ---------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [ ] Ceiling Rate: The interest rate ceiling for this note is the ---------- ceiling rate announced by the Credit Commissioner from time to time. [ ] Frequency and Timing: The rate on this note may change as often as . ----- --------------------------------------------- A change in the interest will take effect ------------------------------------ - -------------------------------------------------------------------------------- [ ] Limitations: During the term of this loan, the applicable annual interest rate will not be more than N/A % or less than N/A %. ---------- ---------- The rate may not change more than N/A % each N/A . ------ ---------------------------------- Effect of Variable Rate: A change in the interest rate will have the following effect on the payment: [ ] The amount of each scheduled [ ] The amount of the final payment will payment will change. change. [ ] . -------------------------------------------------------------------------- ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 DAY basis. ----------------- POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below: [X] on the same fixed or variable rate basis in effect before maturity ( as indicated above ). [ ] at the rate equal to . ---------------------------------------------------- [ ] LATE CHARGE: If a payment is made more than days after it is due, ------------ I agree to pay a late charge of - -------------------------------------------------------------------------------- . - -------------------------------------------------------------------------------- [ ] ADDITIONAL CHARGES: In addition to interest , I agree to pay the following charges which [ ] are [ ] are not included in the principal amount above: . - -------------------------------------------------------------------------------- PAYMENTS: I agree to pay this note as follows: [ ] Interest: I agree to pay accrued interest - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [ ] Principal: I agree to pay the principal - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [X] Installments: I agree to pay this note in 24 payments. The first ---------- payment will be in the amount of $ $66,532.65 and will be due 5/12/2002. --------------------- ---------- A payment of $ $66,532.65 will be due 12TH OF EACH MONTH --------------------- ---------------------------------- thereafter. The final payment of the entire unpaid balance of the principal and interest will be due 4/12/2004 . ----------------------------------------------------------- ADDITIONAL TERMS; ALL INVENTORY NOW OWNED AND HEREAFTER ACQUIRED BY DEBTOR WHEREVER LOCATED, EXCEPT PARTS INVENTORY --------------------------------- 6004 S US HWY 59 [X] SECURITY: This note is LUFKIN, TX 75904 separately secured by (describe separate document by type and date): SEC AGRMT DATED 4/12/2002 (This section is for your internal se. failure to list a separate security document does not mean the agreement will not secure this note.) --------------------------------- - -------------------------------------------- THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PURPOSE: The purpose of this PRIOR, loan REFINANCED FROM ANOTHER CONTEMPORANEOUS, OR SUBSEQUENT ORAL ---------------------------- AGREEMENTS OF THE PARTIES. INSTITUTION (BUSINESS) --------------------------------- SIGNATURES: I AGREE TO THE TERMS OF THIS NOT (INCLUDING THOSE ON THERE ARE NO UNWRITTEN ORAL PAGE 2). I have received a copy AGREEMENTS BETWEEN THE PARTIES. on today's date. - -------------------------------------------- Signature for Lender --------------------------------- TEXAS TIMBERJACK, INC. BY HAROLD ESTES, PRESIDENT - -------------------------------------------- --------------------------------- - -------------------------------------------- --------------------------------- ---------------------------------