AND MAY
CHARGE THE SAME TO THE LOAN ACCOUNT NOTWITHSTANDING THAT SUCH AMOUNT SO ADVANCED
MAY RESULT IN AN OVERADVANCE. SUCH ACTION ON THE PART OF THE LENDER SHALL NOT
CONSTITUTE A WAIVER OF THE LENDER'S RIGHTS UNDER SECTION 1-7(B), BELOW. ANY
AMOUNT WHICH IS ADDED TO THE PRINCIPAL BALANCE OF THE LOAN ACCOUNT AS PROVIDED
IN THIS SECTION SHALL BEAR INTEREST AT THE INTEREST RATE APPLICABLE FROM TIME TO
TIME TO THE UNPAID PRINCIPAL BALANCE OF THE LOAN ACCOUNT.
(F)
ANY STATEMENT RENDERED BY THE LENDER TO THE BORROWERS CONCERNING
THE LIABILITIES SHALL BE CONSIDERED CORRECT AND ACCEPTED BY THE BORROWERS AND
SHALL BE CONCLUSIVELY BINDING UPON THE BORROWERS UNLESS THE BORROWERS PROVIDE
THE LENDER WITH WRITTEN OBJECTION THERETO WITHIN TWENTY (20) DAYS FROM THE
MAILING OF SUCH STATEMENT, WHICH WRITTEN OBJECTION SHALL INDICATE, WITH
PARTICULARITY, THE REASON FOR SUCH OBJECTION. THE LOAN ACCOUNT AND THE LENDER'S
BOOKS AND RECORDS CONCERNING THE LOAN ARRANGEMENT CONTEMPLATED HEREIN AND THE
LIABILITIES SHALL BE PRIMA FACIE EVIDENCE AND PROOF OF THE ITEMS DESCRIBED
THEREIN.
1-6.
THE MASTER NOTE.
THE OBLIGATION TO REPAY LOANS AND ADVANCES UNDER
THE REVOLVING CREDIT, WITH INTEREST AS PROVIDED HEREIN, MAY BE EVIDENCED BY A
NOTE (THE "AMENDED AND RESTATED MASTER NOTE") IN THE FORM OF EXHIBIT 1-6,
ANNEXED HERETO, EXECUTED BY THE BORROWERS.
NEITHER THE ORIGINAL NOR A COPY OF
THE MASTER NOTE SHALL BE REQUIRED, HOWEVER, TO
5
ESTABLISH OR PROVE ANY LIABILITY.
IN THE EVENT THAT THE MASTER NOTE IS EVER
LOST, MUTILATED, OR DESTROYED, THE BORROWERS SHALL EXECUTE A REPLACEMENT THEREOF
AND DELIVER SUCH REPLACEMENT TO THE LENDER.
1-7.
PAYMENT OF LOAN ACCOUNT.
(A)
THE BORROWERS MAY REPAY ALL OR ANY PORTION OF THE PRINCIPAL
BALANCE OF THE LOAN ACCOUNT FROM TIME TO TIME UNTIL THE TERMINATION DATE.
(B)
THE BORROWERS, WITHOUT NOTICE OR DEMAND FROM THE LENDER, SHALL PAY
THE LENDER THAT AMOUNT, FROM TIME TO TIME, WHICH IS NECESSARY SO THAT THE
BALANCE OF THE LOAN ACCOUNT DOES NOT EXCEED AVAILABILITY.
(C)
THE BORROWERS SHALL PAY THE THEN ENTIRE UNPAID BALANCE OF THE LOAN
ACCOUNT AND ALL OTHER LIABILITIES ON THE TERMINATION DATE.
1-8.
INTEREST.
(A)
THE UNPAID PRINCIPAL BALANCE OF THE REVOLVING CREDIT
LOANS THAT
CONSTITUTE BASE RATE LOANS SHALL BEAR INTEREST, UNTIL REPAID (CALCULATED BASED
UPON A 360-DAY YEAR AND ACTUAL DAYS ELAPSED), AT AN ANNUAL RATE EQUAL TO THE
AGGREGATE OF BASE PLUS THE APPLICABLE MARGIN (FOR BASE RATE LOANS), PROVIDED,
FURTHER THAT IN NO EVENT SHALL INTEREST BE IN EXCESS OF THE MAXIMUM RATE
PERMITTED BY APPLICABLE LAW.
(B)
FOLLOWING THE OCCURRENCE OF ANY EVENT OF DEFAULT (AND WHETHER OR
NOT THE LENDER EXERCISES ANY OF THE LENDER'S RIGHTS ON ACCOUNT OF SUCH EVENT OF
DEFAULT), ALL LOANS AND ADVANCES MADE UNDER THE REVOLVING CREDIT SHALL BEAR
INTEREST, THROUGH THE END DATE, AT A RATE WHICH IS THE AGGREGATE OF THAT
PROVIDED FOR IN SECTION 1-8(A), ABOVE, PLUS TWO (2%) PERCENT PER ANNUM.
(C)
ACCRUED INTEREST ON BASE RATE LOANS SHALL BE PAYABLE:
(I)
MONTHLY IN ARREARS