EX-10.12 17 ex1012.txt LOAN AGREEMENT WITH LIBERTY BANK DATED 8/16/01 Exhibit 10.12
---------------------------------------------------------------------------------------------- DECORIZE, INC. LIBERTY BANK ACCOUNT #: 431931810 211 S. UNION, SUITE F 1414 E PRIMROSE Loan Number 004215566 SPRINGFIELD, MO 65802 SPRINGFIELD, MO 65804 Date AUGUST 16, 2001 Maturity Date NOV. 16, 2001 Loan Amount $150,150.00 Renewal Of ______________ BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS "I" includes each borrower above. "You" means the lender, joint and severally. its successors and assigns. ----------------------------------------------------------------------------------------------
For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of ONE HUNDRED FIFTY THOUSAND ONE HUNDRED FIFTY AND NO/100* * * * * * * * * * Dollars $150,150.00 [X] Single Advance: I will receive all of this principal sum on AUGUST 16, 2001. No additional advances are contemplated under this note. [X] 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 principal advances are contemplated. Conditions: The conditions 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 land subject to all other conditions). INTEREST: I agree to pay interest on the outstanding principal balance from AUGUST 16, 2001 at the rate of 7.750% per year until FIRST CHANGE DATE. Variable Rate: This rate may then change as stated below. [X] Index Rate: The future rate will be 1.000% OVER the following index rate: NEW YORK PRIME RATE AS PUBLISHED IN MONEY SECTION OF WALL STREET JOURNAL [ ] No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control. [ ] Frequency end Timing: The rate on this note may change as often as DAILY A change in the interest rate will take effect ON THE SAME DAY [ ] Limitations: During the term of this loan. the applicable annual interest rate will not be more than ____% or less than _____%. The rate may not change more than ______% each ________. Effect of Variable Rate: A change in the interest rate will have the following effect on the payments: [ ] The amount of each scheduled payment will change. [ ] The amount of the final payment will change. [X] THE AMOUNT DUE AT MATURITY WILL CHANGE. ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 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 a 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 ________. [X] ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which [X] are [ ] are not included in the principal amount above: LOAN DOCUMENT PREPARATION FEE $100.00 DELAWARE UCC FEE $50.00 PAYMENTS: I agree to pay this note as follows: [X] Interest: I agree to pay accrued interest ON DEMAND, BUT IF NO DEMAND IS MADE AT MATURITY [X] Principal: I agree to pay the principal ON DEMAND, BUT IF NO DEMAND IS MADE THEN ON NOVEMBER 16, 2001 [ ] Installments: I agree to pay this note in ________ payments. The first payment will be in the amount of $_______ and will be due ________. A payment of $__________ will be due ____________ thereafter. The final payment of the entire unpaid balance of principal and interest will be due ___________. [ ] Unpaid Interest: If checked, then any accrued interest not paid when due (whether due by reason of a schedule of payments or due because of Lender's demand) will become part of the principal thereafter, and will bear interest at the interest rate in effect from time to time as provided for in this agreement. ADDITIONAL TERMS: [X] SECURITY: This note is separately PURPOSE: The purpose of this loan is secured by (describe separate document BUSINESS: WORKING CAPITAL by type end date): SECURITY OF EVEN DATE AND LIMITED GUARANTY OF EVEN DATE SIGNATURES: I AGREE TO THE TERMS OF EXECUTED BY JON & JO BAKER THIS NOTE (INCLUDING THOSE ON PAGE 21. I have received a copy on today's (This section if your internal use. date. Failure to list a separate document does not mean the agreement will not secure this note.) Signature for Lender X BY: /s/ Jon Baker ----------------------------------- ------------------------------------- JAY TENNISON, EXEC VICE PRESIDENT JON BAKER, PRESIDENT BY: ------------------------------------- ATTEST: GAYLEN BALL, SECRETARY