Sample Business Contracts

Business Loan Agreement - U.S. Bank NA and Network Acquisitions Inc.

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                          BUSINESS LOAN AGREEMENT


                      U.S. BANK NATIONAL ASSOCIATION
                        NETWORK ACQUISITIONS, INC.

The undersigned, jointly and severally if more than one (herein called
"Borrower"), hereby warrants, covenants and agrees with U.S. BANK NATIONAL
ASSOCIATION (herein called "Bank"), as follows:


     In consideration of the mutual promises herein contained and in
     reliance upon the representations and warranties herein subject to
     the terms and conditions hereof, Bank does hereby commit or loan to
     Borrower, and Borrower acknowledges the following described
     indebtedness to Bank currently outstanding or which may be hereafter

     $600,000.00 Revolving Line of Credit


     Borrower promises and agrees to repay the Loan and all other
     Indebtedness (as hereinafter defined) of Borrower to Bank with
     interest in accordance with the terms and conditions of the
     promissory note or notes (herein called the "Note") executed by
     Borrower on even date herewith and any extensions or renewals
     thereof, it being agreed that all Indebtedness not evidenced by such
     Note shall be payable by Borrower to Bank upon demand.


     As collateral for the Indebtedness to Bank, the Borrower grants to
     the Bank a security interest in the following:

     a)   Three (3) Certificates of Deposits issued by U.S. Bank National
          Association as follows:

          ---------------------------  ----
          394311236639       20,000.00  Network Acquisitions, Inc.
          ------------      ----------  --------------------------
          394311236738      100,000.00  Fairway Realty Associates
          ------------      ----------  -------------------------
          394311236688      300,000.00  William M.B. Berger Living Trust
          ------------      ----------  ---------------------------------

     b)   Two Letters of Credit for the benefit of U.S. Bank National
          Association as follows:

          ISSUER   .............                  AMOUNT
          ------                                  ------

          Peninsula Bank of San Diego             $100,000.00
          ---------------------------             -----------
          Marathon National Bank of New York      $100,000.00
          ----------------------------------      -----------


     So long as any part of the Indebtedness to Bank remains unpaid,
     Borrower will:

     a)   Carry on and conduct its business in substantially the same
          manner and in substantially the same fields as such business is
          now and has heretofore been carried on, and maintain its legal
          existence and comply with all valid and applicable statutes,
          rules and regulations.

     b)   Maintain a system of bookkeeping and accounting in accordance
          with generally accepted accounting principles.

     c)   Maintain executive management reasonably acceptable to the Bank
          and give notice to the Bank of any changes thereof.

     d)   Furnish to Bank such other information as Bank may reasonably
          request, and allow Bank, by or through its officers, agents,
          attorneys or accountants, to examine and inspect the books and
          records of the Borrower and to make abstracts and copies thereof
          and to visit and inspect any of the property of the Borrower.

     e)   File all Federal, State and other tax and similar returns and
          has paid, or provided for the payment of, all taxes and
          assessments due thereunder through the current date, including
          all withholding, FICA, franchise and other taxes and will
          continue to file and pay, or provide for the payment of, such
          returns and taxes before any penalties are imposed, except where
          the validity of any tax is being diligently contested in good
          faith.  Borrower's Federal income tax returns have been accepted
          as filed by the Internal Revenue Service and there are no unpaid
          deficiency assessments for any taxes payable now or for any
          prior years.

     f)   Maintain all of Borrowers depository accounts and balances with
          U.S. Bank National Association.

     g)   If, in the banks opinion, the financial condition of the banks
          issuing any of the Letters of Credit pledged as collateral for
          this Loan deteriorates, the Borrower will be required to a)
          substitute collateral acceptable to the Bank or b) pay down the
          Loan to a balance acceptable to the Bank.  At that time, the
          Bank will reduce the availability of the Revolving Line of
          Credit accordingly.

     h)   Comply in all material respects, with all applicable laws,
          rules, regulations and orders of any government authority, non-
          compliance with which would materially adversely affect its
          business or credit.


     a)   Borrower agrees to furnish to the Bank, the following:

          i)   Within sixty (60) days after the end of each quarter:

               a)   For that period and fiscal year to date, a balance
                    sheet and statement of income and expenses in a format
                    acceptable to Bank.

          ii)  Within ninety (90) days after the Borrowers fiscal year

               a)   CPA audited financial statements.


     a)   So long as any part of the Indebtedness to Bank remains unpaid,
          Borrower will not, without Bank's prior written consent:

          i)   Invest in, organize or participate in the organization of
               any other business entity or merge, consolidate with or
               into any other corporation or entity;

          ii)  Pay or declare any dividends; or

          iii) Incur, assume, or permit any liability to exist for
               borrowed money except from Bank, or incur, assume or permit
               any other debts outside of the ordinary course of business
               or loan money to, or guarantee or otherwise become in any
               way liable for the obligations of, a firm, person or

          iv)  Engage in any line of business substantially different from
               the current business.


     a)   The Borrower shall carry on the business and operations at the
          property to comply in all respects, and will remain in
          compliance, with all applicable federal, state, regional, county
          or local laws, statutes, rules, regulations or ordinances,
          concerning public health, safety or the environment including,
          without limitation,

          i)   laws or regulations relating to releases, discharges,
               emissions or disposals to air, water, land or groundwater,

          ii)  to the withdrawal or use of groundwater,

          iii) to the use, handling or disposal of polychlorinated
               biphenyls (PCB's), asbestos or urea formaldehyde,

          iv)  to the treatment, storage, disposal or management of
               hazardous substances (including, without limitation,
               petroleum, its derivatives, by-products or other
               hydrocarbons), and any other solid, liquid or gaseous
               substance, exposure to which is prohibited, limited or
               regulated, or may or could pose a hazard to the health and
               safety of the occupants of the Side and Facility or the
               property adjacent to or surrounding the Site,

          V)   to the exposure of persons to toxic, hazardous, or other
               controlled, prohibited or regulated substance,

          vi)  to the transportation, storage, disposal, management or
               release of gaseous or liquid substances, and any
               regulation, order, injunction, judgment, declaration,
               notice or demand issued thereunder.

     b)   Bank's obligation to advance funds on a line of credit or other
          open ended credit arrangement will terminate upon the occurrence
          of a breach of any provision of this Section.  Borrower agrees
          to indemnify and hold harmless Bank, its assigns, successors,
          and grantees against any and all claims and losses resulting
          from a breach of this Section and Borrower will pay or reimburse
          Bank for all costs and expenses for expert opinions or
          investigations required or requested by Bank in Bank's sole
          discretion, to insure compliance with this Section.  This
          obligation to indemnify shall survive the payment of the
          Indebtedness of Borrower to Bank.


     a)   Upon the occurrence of any of the following events, Bank, may,
          at its option and upon notice to Borrower, declare the principal
          of and interest on any Note of Borrower and all Indebtedness of
          Borrower then remaining unpaid to be immediately due and
          payable, all without demand, presentment or other notice of any
          kind, which are hereby expressly waived:

          i)   Non-payment of any principal or interest on its
               Indebtedness to Bank or material non-contested liability to
               others when and as the same shall have come due and
               payable, whether at maturity, by acceleration or otherwise.

          ii)  Failure to promptly perform and observe the covenants,
               terms and conditions hereof, in the application relative
               thereto, or of any statement, warranty or representation
               made herein, or in any agreement, application, or writing
               made or executed and delivered to Bank in connection
               herewith is or proves to be untrue or misleading in any
               material respect.

          iii) Borrower's adjudication as a bankrupt, or if it makes any
               general assignment for the benefit of creditors, or the
               institution by or against it of any type of insolvency
               proceeding or of any proceeding for the liquidation or
               winding up of its affairs, or the appointment of a receiver
               or trustee for Borrower or for any of its assets, or the
               approval of a properly filed petition for its
               reorganization under the Bankruptcy Act or other similar
               act, or the filing of any petition by Borrower for an
               arrangement under Chapter XI of the Bankruptcy Act or other
               similar act, except that institution of an insolvency
               proceeding against Borrower will not be a default if
               dismissed within 45 days..

          iv)  Termination or dissolution of Borrower.

          v)   If the Bank in good faith believes that the prospect of
               prompt payment of Indebtedness in full as and when due or
               the full performance of Borrower's obligations by Borrower
               is impaired.

          vi)  If any of the Letters of Credit that have been pledged as
               collateral for this loan are not renewed.

          vii) The occurrence of any event described in Section 8 a) i),
               ii), iii), iv), v) or vi) hereof with respect to any
               endorser or guarantor or any other party liable for payment
               of Borrower's Indebtedness to Bank.


     a)   As used herein "Indebtedness" means and includes:

          i)   all Indebtedness and liabilities of whatsoever kind, nature
               or description owed to Bank by Borrower, whether direct or
               indirect, absolute or contingent due or to become due,
               whether now existing or acquired, whether joint, joint and
               several, or several, and

          ii)  all costs and expenses incurred by Bank in the protection,
               preservation, enforcement and collection of any of the
               foregoing, including, without limitation, attorney's fees.

     b)   In all cases where the context and construction so require, all
          words used in the singular shall be deemed to have been used in
          the plural, and words phrased in one gender shall included all

     c)   This Agreement shall be binding upon and inure to the benefit of
          the parties hereto, their respective heirs, representatives,
          successors, and assigns.

     d)   The laws of the State of Colorado shall govern this Agreement
          and all rights and obligations hereunder, including matters of
          construction, validity and performance.

     e)   No course of dealing on the part of the Bank, its officers or
          employees, nor any failure or delay by Bank with respect to the
          exercise of any right, power or privilege by Bank under this
          loan agreement shall operate as a waiver thereof, and any single
          or partial exercise of any such right, power or privilege shall
          not preclude any later exercise thereof or any exercise of any
          other right, power or privilege hereunder.  No waiver or default
          shall be effective unless in writing, signed by an officer of
          the Bank.  No waiver of any default or forbearance on the part
          of Bank in enforcing any of its rights under this loan agreement
          shall operate as a waiver of any other default or right or of
          the same default or right on a future occasion.

     f)   If there is any conflict between this Agreement and the
          Additional Provisions contained in the Note, this Agreement

Signed and sealed by Borrower this 18th day of January, 1999.


7475 Dakin Street, Suite 607
Denver, Colorado 80221

BY:  /s/ Craig E. Lassen
     Craig E. Lassen, CEO


8401 East Belleview Avenue
Denver, CO 80237

BY:  /s/ Ralph P. Atkinson
     Ralph P. Atkinson
     Vice President

                              PROMISSORY NOTE

                                   FOR BANK USE ONLY
                                   Initial Rate:
                                   Scheduled Maturity:
                                   Note No.:
                                   This Note renews/replaces Note
                                   Officer Approval:  /s/

(Single/Multiple Advance - Single Pay/Demand/Installment - Commercial/

    MAY 31, 1998                   DENVER, CO
   --------------        ------------------------------
     Note Date           City, State where Bank located

For value received, the undersigned (if more than one, jointly and
severally, the "Borrower") promises to pay to the order of U.S. BANK
NATIONAL ASSOCIATION (The "Bank"), its successors and assigns, at the
Bank's office at 918 17TH STREET, DENVER, CO 80202, or at any other place
designated in writing by the Bank or any subsequent holder hereof (the
"Holder"), in lawful money of the United States of America, the principal
sum of SIX HUNDRED THOUSAND AND NO/100 Dollars ($600,000.00) or so much
thereof as has been advanced and remains outstanding hereunder on the
Maturity Date, as shown by the Holder's books and records, together with
interest at a rate described below (calculated on the basis of actual days
elapsed and a 360-day year) on the unpaid principal hereof, from time to
time outstanding, from the date hereof until this Promissory Note ("Note")
is fully paid, as follows:


[--] A fixed annual rate of ----------%.

[XX] A variable annual rate equal to the Reference Rate plus 1.50% (The
     term "Reference Rate" means the rate determined and announced from
     time to time as U.S. Bank National Association's Reference Rate.  The
     Bank may lend to its customers at rates that are at, above, or below
     the Reference Rate).

[--] A variable annual rate equal to the Prime Rate ------------------
     (The term "Prime Rate" means the highest rate published from time to
     time in the WALL STREET JOURNAL as the Prime Rate.  If a range of
     rates is so published, the Holder may choose any rate within the

[--] Other ---------------------------------------------------------------

If the index used to compute a variable rate ceases to be available, the
Holder may choose a comparable successor index.

If this Note bears interest at a variable rate, the annual rate of
interest hereon shall never exceed the highest rate permitted by
applicable law; and the rate of interest shall be determined initially as
of the date hereof and thereafter shall be adjusted when and as the index


[--] Principal and interest shall be paid in a single payment on ---------
     ------------------ ("Maturity Date").

[XX] Principal shall be paid in a single payment:   [--] on demand or [X]
     on 01/31/99 ("Maturity Date"); interest shall be paid [X]]monthly or
     [--] quarterly or [--]--------------------- commencing on 06/30/98,
     and continuing on the same day of each successive month/quarter/MONTH
     (as applicable) thereafter with a final payment of all unpaid
     interest at the time of payment of the principal.

[--] Principal shall be paid in ----------------------------- (---) equal
     [--] monthly, [--] quarterly, [--] semi-annual or[--] annual
     installments of $---------- each, commencing on ---------------, and
     continuing on the same day of each successive month/quarter/six
     months/year (as applicable) thereafter, with a final payment of all
     unpaid principal on ------------------ ("Maturity Date"); interest
     shall be paid [--] monthly or [--] quarterly or [--] --------------
     commencing on ---------------------, and continuing on the same day
     of each successive month/quarter/ -------------(as applicable)
     thereafter until the final payment of all unpaid principal is

[--] Principal and interest shall be paid in ------------ (------) equal [-
     -] monthly, [--] quarterly, [--] semi-annual, or [--] annual
     installments of $------------ each, commencing on ------------, and
     continuing an the same day of each successive month/quarter/ six
     months/year (as applicable) thereafter with a final payment of all
     unpaid principal and interest on ------------ ("Maturity Date").

The Bank may charge the Borrower's Account No. ------------ maintained
with the Bank for payments of [--] interest only, or [--] principal and
interest due under this Note.

All principal and interest due but not paid on the Maturity Date shall
bear interest at a rate of interest five percent (5%) per annum in excess
of the rate otherwise applicable to this Note on the Maturity Date, unless
applicable law limits the rate of interest which may be charged after the
Maturity Date, in which event unpaid principal shall bear interest after
the Maturity Date at the rate in effect on the Maturity Date.


[XX] To the extent the Bank has agreed in a separate written agreement,
     amounts repaid may be readvanced to the Borrower and be evidenced by
     this Note.

[XX] This Note is secured.              [--] This Note Is guaranteed.

The Bank has no obligation to renew, modify or extend this Note.


[--] This Note evidences a construction loan in accordance with C.R.S. 4-9-



[--] This Note Is delivered in connection with a certain written agreement
dated ---------------------.





/s/ Craig E. Lassen      (Its) CEO

Address             7475 DAKIN STREET
of Borrower         DENVER, CO 80221

                           ADDITIONAL PROVISIONS


     So long as this Note bears interest at a variable rate, it may be
prepaid in whole or in part at any time.  Unless otherwise agreed to in
writing by the Holder, any prepayment shall be applied first to unpaid
accrued interest with the remainder applied to reduction of principal,
and, if principal is payable in installments, shall be applied to
principal in the inverse order of maturities.  If the demand feature of
this Note does not apply and this Note bears interest at a rate that is
fixed or based upon multiple fixed rate advances, this Note or any fixed
rate advance hereunder may only be prepaid with the prior written consent
of the Holder.  The Holder may impose a prepayment charge as a condition
for granting such consent.


     Any extension of time for the payment of the principal of this Note
resulting from the Maturity Date failing on a Saturday, Sunday or legal
holiday shall be included in the computation of interest.


     If payments of principal or interest hereon are not paid when due; or
if any other indebtedness of the Borrower, or of any guarantor, endorser
or surety hereof (an "Accommodator"), to the Holder is not paid when due;
or if a garnishment summons or a writ of attachment or levy is issued
against or served upon the Holder for the attachment of any property of
the Borrower or an Accommodator in the Holder's possession or any
indebtedness owing by the Holder to the Borrower or an Accommodator; or if
the Borrower or an Accommodator shall submit to the Holder any credit
application or financial statement containing information which shall
prove to be incorrect in any material respect when submitted; or if the
Borrower or an Accommodator shall fail to provide annual financial
statements upon request; or if the Borrower shall fail to pay when due any
indebtedness the Borrower may owe to others for money borrowed; or if the
Borrower or an Accommodator shall violate any terms of any mortgage,
security agreement or guaranty securing this Note, including any "due on
sale" clause, or of any other agreement relating to this Note; or if the
Holder shall at any time in good faith believe that the prospect of due
and punctual payment of this Note is impaired, THEN, in any such event,
the Holder may, at its option, declare this Note to be immediately due and
payable and thereupon this Note shall be immediately due and payable,
together with all unpaid interest accrued hereon, without notice or
demand; provided, however, that if this Note is payable upon demand,
nothing herein contained shall preclude or limit the Holder from demanding
payment of this Note at any time and for any reason, without prior notice.

     This Note shall also become automatically due and payable (together
with unpaid interest accrued hereon) without notice or demand should the
Borrower or any Accommodator die (if an individual), or should a petition
be filed by or against the Borrower or an Accommodator under the United
States Bankruptcy Code or any other law relating to insolvency,
reorganization, receivership or relief of debtors.

Cost, Setoff

     If this Note is not paid on the Maturity Date or any event occurs
that would entitle the Holder to declare this Note to be immediately due
and payable, the Borrower and each Accommodator agree to pay all costs of
collection, including reasonable attorney fees, where not prohibited by
state law.  Any sums credited by or due from the Holder to the Borrower or
any Accommodator and any other property of any Borrower or any
Accommodator in the Holder's possession may at all times be held and
treated as collateral security for the payment hereof.  The Holder shall
have the right to setoff the indebtedness evidenced by this Note against
any indebtedness of the Holder to the Borrower or to an Accommodator.


     The Holder may at any time renew or modify this Note, extend its
Maturity Date for any period, accept partial payments, or release or
substitute any security for or any party to (including any other
Accommodator) this Note, all without notice to or consent of and without
releasing any Accommodator, or affecting their liability to the Holder.
Each Accommodator waives any and all defenses that may be available to a
surety, and any right to require the Holder to proceed against any
security for this Note prior to proceeding under this Note against any
Accommodator or the Borrower. except as said rights may otherwise be set
forth in separate instruments between Bank and any Accommodator.

     Presentment or other demand for payment, protest, notice of dishonor
and notice of protest are hereby waived by the Borrower and each


     The Borrower and each Accommodator agree that each provision, for
which the box immediately preceding such provision is checked, is part of
this Note and those provisions for which the relevant box is not checked
are not a part of this Note.

     This Note shall be governed by the substantive laws of the state
COLORADO, except insofar as the Bank may rely on the laws of the United
States to justify the interest rate charged hereunder.

     The unenforceability of any provision of this Note shall not affect
the enforceability or validity of any other provision hereof.