FUNDING.
LENDER RESERVES THE RIGHT TO
REQUIRE NOT LESS THAN ONE (1) BUSINESS DAY PRIOR NOTICE OF EACH LOAN UNDER THE
CREDIT FACILITY, SPECIFYING THE AGGREGATE AMOUNT OF SUCH LOAN TOGETHER WITH ANY
DOCUMENTATION RELATING THERETO AS LENDER MAY REASONABLY REQUEST; INCLUDING, BUT
NOT LIMITED TO, A BORROWING BASE REPORT.
DEBTOR SHALL GIVE LENDER NOTICE OF
EACH LOAN UNDER THE CREDIT FACILITY BY NO LATER THAN 1:00 P.M. (DALLAS, TEXAS
TIME) ON THE DATE PROVIDED HEREIN.
LENDER AT ITS OPTION MAY ACCEPT TELEPHONIC
REQUESTS FOR SUCH LOAN, PROVIDED THAT SUCH ACCEPTANCE SHALL NOT CONSTITUTE A
WAIVER OF LENDER'S RIGHT TO REQUIRE DELIVERY OF A WRITTEN REQUEST IN CONNECTION
WITH SUBSEQUENT LOANS.
LENDER SHALL HAVE NO LIABILITY TO DEBTOR FOR ANY LOSS OR
DAMAGE SUFFERED BY DEBTOR AS A RESULT OF LENDER'S HONORING OF ANY REQUESTS,
EXECUTION OF ANY INSTRUCTIONS, AUTHORIZATIONS OR AGREEMENTS OR RELIANCE ON ANY
REPORTS COMMUNICATED TO IT TELEPHONICALLY, BY FACSIMILE OR ELECTRONICALLY AND
PURPORTING TO HAVE BEEN SENT TO LENDER BY DEBTOR AND LENDER SHALL HAVE NO DUTY
TO VERIFY THE ORIGIN OF ANY SUCH COMMUNICATION OR THE IDENTITY OR AUTHORITY OF
THE PERSON SENDING IT.
SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT,
EACH LOAN UNDER THIS SECTION SHALL BE MADE AVAILABLE TO DEBTOR BY DEPOSITING THE
SAME, IN IMMEDIATELY AVAILABLE FUNDS, IN AN ACCOUNT OF DEBTOR DESIGNATED BY
DEBTOR OR BY PAYING THE PROCEEDS OF SUCH LOAN TO A THIRD PARTY DESIGNATED BY
DEBTOR.
(D)
USE OF PROCEEDS.
THE LOANS UNDER THE CREDIT
FACILITY SHALL BE USED BY DEBTOR SOLELY FOR BUSINESS OPERATIONS.
3.
NOTE, RATE AND COMPUTATION OF
INTEREST.
THE CREDIT FACILITY SHALL BE EVIDENCED BY THE NOTE.
THE PRINCIPAL OF
AND INTEREST ON THE NOTE SHALL BE DUE AND PAYABLE IN ACCORDANCE WITH THE
RESPECTIVE TERMS AND CONDITIONS SET FORTH IN THE NOTE AND IN THIS AGREEMENT.
4.
COLLATERAL.
(A)
GRANT OF SECURITY INTEREST.
AS COLLATERAL
SECURITY FOR THE PROMPT PAYMENT IN FULL WHEN DUE (WHETHER AT STATED MATURITY, BY
ACCELERATION OR OTHERWISE) OF THE INDEBTEDNESS, DEBTOR HEREBY PLEDGES TO AND
GRANTS LENDER, A SECURITY INTEREST IN, ALL OF DEBTOR'S RIGHT, TITLE AND INTEREST
IN THE COLLATERAL, WHETHER NOW OWNED BY DEBTOR OR HEREAFTER ACQUIRED AND WHETHER
NOW EXISTING OR HEREAFTER COMING INTO EXISTENCE.
(B)
ADDITIONAL DOCUMENTS.
TO SECURE FULL AND
COMPLETE PAYMENT AND PERFORMANCE OF THE INDEBTEDNESS, DEBTOR SHALL EXECUTE AND
DELIVER OR CAUSE TO BE EXECUTED AND DELIVERED ALL OF THE LOAN DOCUMENTS
REASONABLY REQUIRED BY LENDER COVERING THE COLLATERAL.
DEBTOR SHALL EXECUTE AND
CAUSE TO BE EXECUTED SUCH FURTHER DOCUMENTS AND INSTRUMENTS, AS LENDER, IN ITS
REASONABLE DISCRETION, DEEMS NECESSARY OR DESIRABLE TO CREATE, EVIDENCE,
PRESERVE, AND PERFECT ITS LIENS AND SECURITY INTERESTS IN THE COLLATERAL.
IN
THE EVENT ANY OF THE LOAN DOCUMENTS EVIDENCING OR SECURING THE INDEBTEDNESS
MISREPRESENTS OR INACCURATELY REFLECTS THE CORRECT TERMS AND/OR PROVISIONS OF
THE INDEBTEDNESS, DEBTOR SHALL UPON REQUEST BY LENDER AND IN ORDER TO CORRECT
SUCH MISTAKE, EXECUTE SUCH NEW DOCUMENTS OR INITIAL CORRECTED, ORIGINAL
DOCUMENTS AS LENDER MAY DEEM NECESSARY TO