CHANGE IN THE VARIABLE RATE
INDEX TO WHICH SUCH RATE IS TIED, BUT THE RATE AT WHICH INTEREST ACCRUES UNDER
THIS NOTE SHALL NEVER EXCEED THE MAXIMUM CONTRACT RATE WHICH MAY BE CHARGED TO
AND COLLECTED FROM BORROWER ON THE LOAN EVIDENCED BY THIS NOTE UNDER APPLICABLE
LAW. BANK SHALL HAVE NO OBLIGATION TO NOTIFY BORROWER OF ADJUSTMENTS IN THE RATE
OF INTEREST PAYABLE UNDER THIS NOTE.
ADJUSTMENTS TO THE RATE OF INTEREST WILL
BE EFFECTIVE AS OF THE FIRST DAY OF EACH MONTH.
CALCULATION OF INTEREST. ALL INTEREST PAYABLE UNDER THIS NOTE WILL ACCRUE DAILY
ON THE BASIS OF THE ACTUAL NUMBER OF DAYS ELAPSED AND A YEAR OF THREE HUNDRED
SIXTY (360) DAYS.
PAYMENT TERMS.
PAYMENT TERMS. PRINCIPAL AND INTEREST SHALL BE DUE AND PAYABLE ON THE FIRST DAY
OF EACH MONTH, COMMENCING AUGUST 1, 2006, IN CONSECUTIVE MONTHLY INSTALLMENTS IN
AN AMOUNT EQUAL TO THE SUM OF (I) ALL THEN ACCRUED AND UNPAID INTEREST, PLUS
(II) A PRINCIPAL PAYMENT IN THE AMOUNT OF $25,000.
THE ENTIRE UNPAID PRINCIPAL
AMOUNT HEREOF, TOGETHER WITH ACCRUED AND UNPAID INTEREST THEREON AND ALL OTHER
AMOUNTS PAYABLE HEREUNDER SHALL BE DUE AND PAYABLE ON JULY 1, 2011 (THE
"MATURITY DATE").
PREPAYMENT.
THIS NOTE MAY BE PREPAID IN WHOLE, OR IN PART AT ANYTIME WITHOUT
ANY FEE OR PREMIUM.
APPLICATION OF PAYMENTS.
ALL PAYMENTS MADE ON THIS NOTE SHALL BE APPLIED FIRST
TO PAYMENT OF ALL LATE FEES, CHARGES, PREMIUMS AND COSTS AND EXPENSES DUE BUT
UNPAID UNDER THIS NOTE, THEN TO ACCRUED BUT UNPAID INTEREST AND FINALLY TO
PRINCIPAL, UNLESS BANK DETERMINES IN ITS SOLE DISCRETION TO APPLY PAYMENTS IN A
DIFFERENT ORDER OR APPLICABLE LAW REQUIRES A DIFFERENT APPLICATION OF PAYMENTS.
PAYMENTS IN FEDERAL FUNDS, IMMEDIATELY AVAILABLE IN THE PLACE DESIGNATED FOR
PAYMENT, RECEIVED BY BANK PRIOR TO 2:00 P.M. LOCAL TIME AT SAID PLACE OF
PAYMENT, SHALL BE CREDITED AS IF RECEIVED PRIOR TO CLOSE OF BUSINESS ON THE DAY
THE FUNDS ARE IMMEDIATELY AVAILABLE; WHILE OTHER PAYMENTS, AT THE OPTION OF
BANK, MAY NOT BE CREDITED UNTIL SUCH PAYMENTS ARE IMMEDIATELY AVAILABLE TO BANK,
IN FEDERAL FUNDS, IN THE PLACE DESIGNATED FOR PAYMENT, PRIOR TO 2:00 P.M. LOCAL
TIME AT SAID PLACE OF PAYMENT ON A DAY ON WHICH BANK IS OPEN FOR BUSINESS.
LOAN AGREEMENT AND SECURITY.
COMMITMENT LETTER.
THE LOAN EVIDENCED BY THIS NOTE WAS MADE PURSUANT TO A
COMMITMENT LETTER ("COMMITMENT LETTER") FROM BANK TO BORROWER DATED JUNE 9,
2006.
LOAN AND SECURITY AGREEMENT.
BORROWER, RBC CENTURA BANK, AS COLLATERAL AGENT,
AND BANK AND RBC CENTURA BANK, AS LENDERS, HAVE ENTERED INTO A LOAN AND SECURITY
AGREEMENT, DATED AS OF EVEN DATE HEREWITH (AS AMENDED OR MODIFIED OR RESTATED
FROM TIME TO TIME, THE "LOAN AND SECURITY AGREEMENT").
THIS NOTE IS ALSO
SECURED BY (1) THE SECURITY DOCUMENTS AND OTHER SUPPORTING OBLIGATIONS
REFERENCED IN THE COMMITMENT LETTER AND BY THOSE REFERENCED IN THE LOAN AND
SECURITY AGREEMENT, AND (2) THE SECURITY DOCUMENTS AND OTHER SUPPORTING
OBLIGATIONS WHICH REFERENCE THAT THEY SECURE THIS NOTE ("SECURITY DOCUMENTS").
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