Document:

REVOLVING CREDIT NOTE

EXHIBIT

10.44

 

REVOLVING CREDIT NOTE

 

	

  $31,500,000

  	

   

  	

  New York, New York

  
	

   

  	

   

  	

  January 31, 2002

  

 

FOR

VALUE RECEIVED, FiberMark Durable Specialties, Inc. (“Borrower”) HEREBY

PROMISES TO PAY to the order of The CIT Group/Business Credit, Inc. (“CITBC”)

at the principal office of The CIT Group/Business Credit, Inc., at 1211 Avenue

of the Americas, New York, New York, 10036, for the account of the Applicable

Lending Office of CITBC, the principal sum of Thirty-One Million Five Hundred

Thousand Dollars ($31,500,000) or, if less, the aggregate unpaid principal

amount of all Revolving Credit Loans made by CITBC to Borrower pursuant to

Section 3.01 or Section 3.03 of the Financing Agreement referred to below, in

lawful money of the United States of America and in immediately available

funds, on the Revolving Credit Commitment Termination Date (as defined in the

Financing Agreement referred to below). 

Borrower also promises to pay interest on the unpaid principal balance

hereof, for the period such balance is outstanding, at said principal office

for the account of said Applicable Lending Office, in like money, at the rates

of interest as provided in the Financing Agreement referred to below, on the

dates and in the manner provided in said Financing Agreement.  Any amount of principal or interest hereof

which is not paid when due, whether at stated maturity, by acceleration, or

otherwise, shall bear interest from the date when due until said principal

amount is paid in full, payable on demand, at a rate per annum equal at all

times to the Default Rate of Interest (as defined in the Financing Agreement

referred to below).

Borrower

hereby authorizes CITBC to endorse on the Schedule annexed to this Revolving

Credit Note the amount and type of all Revolving Credit Loans made to the

Borrower by CITBC and all Continuations, Conversions and payments of principal

amounts in respect of such Revolving Credit Loans, which endorsements shall

constitute prima facie evidence, absent manifest error, as to the outstanding

principal amount of all Revolving Credit Loans owed to CITBC; provided, however,

that the failure to make such notation with respect to any Revolving Credit

Loan or payment shall not limit or otherwise affect the obligation of the

Borrower under the Financing Agreement or this Revolving Credit Note.

This

is one of the Revolving Credit Notes referred to in that certain Fourth Amended

and Restated Financing Agreement and Guaranty dated as of January 31, 2002

among FiberMark, Inc., FiberMark Durable Specialties, Inc., FiberMark Filter

and Technical Products, Inc., FiberMark Office Products, LLC, 

 

1

 

FiberMark DSI Inc., The CIT Group/Business

Credit, Inc. (“CITBC”), The CIT Group/Equipment Financing, Inc. (“CITEF,” and

together with CITBC, the “Initial Lenders”), the other lenders that may,

subsequent to the date hereof, purchase from the Initial Lenders a portion of

their rights and obligations under the Fourth Amended and Restated Financing

Agreement and Guaranty pursuant to, and in accordance with, Section 14.07

thereof (CITBC, CITEF and such other lenders each individually a “Lender” and

collectively the “Lenders”), and CITBC as agent for the Lenders (in such

capacity, together with its successors or assigns in such capacity, the

“Agent”) (as it may be hereafter amended, modified or supplemented from time to

time, the “Financing Agreement”).  All

capitalized terms used herein and not defined herein shall have the meanings

given to them in the Financing Agreement.

This Revolving Credit Note is issued in replacement of

the “Revolving Credit Note” issued to CITEF by Borrower pursuant to the

September 1999 Agreement (the “Existing Note”).  It continues, and does not constitute a novation of, the

obligations evidenced by the Existing Note, and shall evidence, in addition to

the obligations otherwise described herein, the principal outstanding under the

Existing Note as of the date hereof, together with accrued interest thereon and

all other obligations relating thereto. 

CITEF is authorized to endorse on the Schedule annexed to this Revolving

Credit Note the unpaid principal amounts and types of all “Revolving Credit

Loans” made to Borrower under the September 1999 Agreement that remain

outstanding as of the date hereof; provided, however, that the failure to make

such notation with respect to any such obligation shall not limit or otherwise

affect the obligation of Borrower under the Financing Agreement or this

Revolving Credit Note.

The

Financing Agreement provides for the acceleration of the maturity of principal

upon the occurrence of an Event of Default and for prepayments on the terms and

conditions specified therein.  This

Revolving Credit Note is secured pursuant to certain of the Loan Documents

referred to in the Financing Agreement, reference to which is hereby made for a

description of the Collateral provided for under the above-referenced documents

and the rights of Borrower, each of the obligors, each of the Lenders, and the

Agent with respect to such Collateral.

Borrower

hereby waives presentment, notice of dishonor, protest and any other notice or

formality with respect to this Revolving Credit Note.

This

Revolving Credit Note shall be governed by, and interpreted and construed in

accordance with, the Laws of the State of New York.

 

FIBERMARK DURABLE

SPECIALTIES, INC.

 

 

By:____________________________________________ 

Name:

Title:

 

 

2

 

SCHEDULE TO REVOLVING

CREDIT NOTE

 

 

	

  Date Loan Made, Continued, Converted or Paid

  	

   

  	

  Type of Loan

  	

   

  	

  Amount of Loan

  	

   

  	

  Amount of Principal Prepaid

  	

   

  	

  Unpaid Principal Balance of Revolving Credit Note

  	

   

  	

  Name of Person Making Notation

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

 

 

3PROMISSORY NOTE

Exhibit 10.1

 

PROMISSORY

NOTE

 

	

  $5,000,000.00

  	

   

  	

  Las

  Vegas, Nevada

  
	

   

  	

   

  	

  Dated:  March 13, 2002

  

 

FOR

VALUE RECEIVED,

PDS GAMING CORPORATION, a

Minnesota corporation (“PDS”),

PDS GAMING CORPORATION-NEVADA, a

Nevada corporation (“PDS-NV”),

PDS GAMING CORPORATION-MISSISSIPPI,

a Mississippi corporation (“PDS-MS”), and PDS

GAMING CORPORATION-COLORADO, a Colorado corporation (“PDS-CO”) jointly and

severally (PDS, PDS-NV, PDS-MS and PDS-CO are collectively referred to herein

as the “Undersigned”),

agree and promise to pay to the order of FIRST

SAVINGS BANK (the “Lender”), its endorsees, successors, participants and

assigns (collectively, the “Holder”), at its principal office at 201 North 3rd Street,

Beresford, South Dakota 57004, or at such other place as the Holder may from

time to time designate, the principal sum of Five

Million and 00/100 Dollars  ($5,000,000.00)

or so much as may from time to time be disbursed hereon in accordance with the

terms of the Loan Agreement, together with interest on the Principal Balance at

the rate of interest hereinafter set forth, in coin or currency, which, at the

time or times of payment, is legal tender for the payment of public and private

debts in the United States of America. 

The terms of this Note shall be read to the extent possible in a manner

consistent with the terms of the Loan Agreement (defined below), but in the

case of a conflict between the terms of this Note and the Loan Agreement, the

terms of this Note shall control.  This

Note shall be payable in the following manner and on all the following terms

and at the following times:

1.     DEFINITIONS.  For purposes of this Note the following terms shall have the

following meanings:

a.     “Default” shall have

the meaning given to such term in Section 11 below.

b.     “Default Rate” shall

have the meaning given to such term in Section 3(b) below.

c.     “Installment Payment Date”

shall have the meaning given to such term in Section 7 below.

d.     “Loan” shall mean the

Loan defined in the Loan Agreement, evidenced by the Note.

e.     “Loan Agreement” shall

mean the Master Loan Agreement of even date entered into between the

Undersigned, as Borrower, and Lender, wherein Lender has agreed to loan to the

Undersigned the Principal of this Note subject to compliance with the terms and

conditions of such agreement.

f.      “Maturity Date” shall

mean April 1, 2005.

g.     “Note” shall mean this

Note and any other promissory note evidencing the Loan.

 

 

h.     “Principal Balance”

shall mean the Principal from time to time outstanding and unpaid on this Note.

i.      “Participation Agreement”

shall mean the Loan Participation and Servicing Agreement of even date herewith

between Lender and all Buyers, as such term is defined in the Participation

Agreement, as the same may be amended or supplemented from time to time in

accordance with its terms.

j.      “Required Payment Amount”

shall have the meaning given to such term in the Loan Agreement.

Terms not defined herein or elsewhere in this

Note shall have the same meaning as defined in the Loan Agreement.

2.     DISBURSEMENTS.  Disbursements under this Note are to be made pursuant to the

terms and conditions of the Loan Agreement.

3.     INTEREST

RATE.  The Principal Balance of this Note

outstanding at the close of each day shall bear interest at the following per

annum rates of interest:

a.     Loan Rate.  From and after the date of the initial

advance, this Note shall bear interest at a definite and certain per annum rate

of interest equal to eight and one quarter

percent (8.25%).

b.     Default Rate.  If a Default (as later defined) occurs under

this Note then, at the option of the Holder hereof, during the entire period

during which such Default shall occur and be continuing interest shall be

payable on the Principal Balance at a per annum rate of interest equal to the

lesser of (i) the maximum lawful rate of interest permitted to be paid on this

Note or (ii) Four Percent (4.00%) plus the Loan Rate (“Default Rate”)

whether or not the Holder has exercised its option to accelerate the maturity

of this Note and declare the entire Principal Balance due and payable.

4.     BASIS

OF COMPUTATION.  Interest shall be computed and charged on

the basis the actual number of days elapsed and a 365/360 day year.  Interest shall commence as to the Principal

Balance as such Principal Balance is advanced.

5.     LATE

CHARGE.  In the event that any payment required

hereunder is not paid when due, the Undersigned agrees to pay a late charge of

$.05 per $1.00 of unpaid payment to defray the costs of the Holder incident to

collecting such late payment.  This late

charge shall apply individually to all payments past due and there will be no

daily pro rata adjustment.  This

provision shall not be deemed to excuse a late payment or be deemed a waiver of

any other rights the Holder may have including the right to declare the entire

Principal Balance and interest immediately due and payable.

6.     TERMS

OF PAYMENT.  This Note shall be payable as follows:

a.     Beginning on May 1, 2002, and on the first day of each

calendar month thereafter (each an “Installment Payment Date”) monthly installments

of principal and interest shall be due and payable until this Note is paid in

full.  Each monthly payment shall be in

an 

 

2

 

amount

equal to the monthly amount necessary to fully amortize the then outstanding

Principal Balance and accrued interest under this Note in equal monthly

installments by the Maturity Date.

b.     The Principal

Balance shall be payable on the earlier to occur of the following:

i.              The Maturity

Date; or

ii.            Such earlier

date as to which payment shall have been accelerated by virtue of he occurrence

of an Event of Default hereunder; or

iii.           The Installment

Payment Date next following the Installment Payment Date on which the Principal

Balance declines below $25,000.00;

at which time the entire Principal Balance and

all accrued and unpaid interest thereon, and all other charges payable pursuant

to the terms hereof shall in any event be fully due and payable.

7.     APPLICATION

OF PAYMENTS.  So long as a Default does not exist, all

payments shall be applied first to any costs of collection, then to late

charges, then to interest and then to the Principal Balance, and all accrued

unpaid interest thereon, except that if any advance made by Lender on behalf of

the Holder under the terms of any instruments securing this Note is not repaid,

any monies received, at the option of Lender, may first be applied to repay

such advances, plus interest hereon, and the balance, if any, shall be applied

as above.  If a Default exists, Lender

may apply any payments received on this Note to the Principal Balance,

interest, late charges or other amounts due from the Undersigned in such order

as Lender, in its sole discretion shall determine.

8.     PREPAYMENT.  At the option of the Borrower, the Principal Balance of the Loan

may be prepaid in whole or in part, at any time after the first year, without

penalty.  Any prepayment shall be made

on thirty (30) days advance written notice to Lender and shall be made only on

an Installment Payment Date and any partial prepayment shall be made in

denominations of no less than $25,000.00. 

Such partial prepayments shall be applied to the Principal Balance in

inverse order of installment payment dates. 

No prepayment shall postpone the due dates of monthly installment

payments.  Amounts paid or prepaid under

this Note may not be reborrowed.  After

a prepayment, the then outstanding Principal Balance and accrued interest will

be reamortized over the period remaining between the date of the prepayment and

the Maturity Date.

9.         SECURITY.  The payment and performance of this Note is

secured by the Security Agreement and other security instruments each of even

date herewith given by the Undersigned to the Lender, each encumbering certain

assets of the Undersigned.

10.      DEFAULT.  If (i) a default be made in any payment when due in accordance

with the terms and conditions of this Note, (ii) an Event of Default (as

defined herein and therein) occurs under this Note, or (iii) an Event of

Default (as defined therein) occurs under the Loan Agreement (any of the events

described in clauses (i), (ii), and (iii) above are herein singularly and

collectively referred to as a “Default”), the entire Principal Balance together with

accrued interest thereon and late charges, if any, shall become immediately due

and payable at the option of Lender, exercised as provided for in the

Participation Agreement.

 

3

 

11.      TIME

OF ESSENCE.  Time is of the essence.  No delay or omission on the part of the

Holder or Lender in exercising any right hereunder shall operate as a waiver of

such right of any other remedy under the Loan Agreement or this Note.  A waiver on any one occasion shall not be

construed as a bar to or waiver of any such right or remedy on a future occasion.

12.      COSTS

OF COLLECTION.  In the event of any Default hereunder the

Undersigned agrees to pay the costs of collection including court costs,

arbitration proceedings, and reasonable attorney’s fees (prior to trial, at

trial, and on appeal) incurred by Lender in collecting the indebtedness secured

hereby, or in exercising or defending, or obtaining the right to exercise, the

rights of Lender or any Participant hereunder or under any of the Loan

Documents (as defined in the Loan Agreement).

13.      WAIVER

OF PRESENTMENT, ETC.  Presentment for payment, protest and notice

of non-payment are waived.  Consent is

given to any extension or alteration of the time or terms of payment hereof,

any renewal, any release of all or any part of the security given for the payment

hereof, any acceptance of additional security of any kind, and any release of,

or resort to, any party liable for payment hereof.

14.      SAVINGS

CLAUSE.  Notwithstanding anything to the contrary set

forth in this instrument, if at any time until payment in full of all of the

indebtedness due hereunder, the interest rate on such indebtedness exceeds the

highest rate of interest permissible under any law which a court of competent

jurisdiction shall, in a final determination, deem applicable hereto (the “Maximum Lawful Rate”),

then in such event and so long as the Maximum Lawful Rate would be so exceeded,

the interest rate shall be equal to the Maximum Lawful Rate; provided,

however, that if at any time thereafter the interest rate is less than the

Maximum Lawful Rate, the Undersigned shall continue to pay interest hereunder

at the Maximum Lawful Rate until such time as the total interest received by

the Holder from the making of advances hereunder is equal to the total interest

which the Holder would have received had the interest rate been (but for the

operation of this paragraph) the interest rate payable since the initial

funding of the Loan.  Thereafter, the

interest rate payable hereunder shall be the interest rate provided for in this

instrument unless and until the interest rate so provided for again exceeds the

Maximum Lawful Rate, in which event this paragraph shall again apply.  In no event shall the total interest

received by the Holder pursuant to the terms hereof exceed the amount which

such Holder could lawfully have received had the interest due hereunder been

calculated for the full term hereof at the Maximum Lawful Rate.  In the event that a court of competent

jurisdiction, notwithstanding the provisions of this paragraph, shall make a

final determination that the Holder has received interest in excess of the

Maximum Lawful Rate, the Holder shall, to the extent permitted by applicable

law, promptly apply such excess first to any interest due and not yet paid

under this instrument, then to the outstanding Principal Balance due under this

instrument, then to other unpaid indebtedness and thereafter shall refund any

excess to Undersigned or as a court of competent jurisdiction may otherwise

order.

15.      USE

OF PROCEEDS.  The Undersigned warrants and represents that

all funds advanced under this Note shall be applied and are intended solely for

the purposes set forth in the Loan Agreement and not for any personal, family

or household purposes.

16.      GOVERNING

LAW; JURISDICTION.  The obligation evidenced by this Note was

negotiated, delivered and accepted in the State of Nevada, the laws of which

state shall in all 

 

4

 

respects

be controlling in the interpretation and validity of this Note and all

obligations evidenced hereby.  The

Undersigned hereby submits itself to the jurisdiction of the State of Nevada,

and the federal courts of the United States located in such state in respect of

all actions arising out of or in connection with the interpretation or enforcement

of this Note and the documents related hereto.

17.      PARTICIPATION

AGREEMENT.  This Note evidences the Undersigned’s debt

with respect to the Loan, and is secured by the Security Agreement.  Any payment of principal or interest, or

premiums or penalty on this Note shall be paid to Lender.  Notwithstanding any other provision herein

or in the Loan Agreement, this Note and all rights hereunder shall be subject

always to the terms of the Participation Agreement, regardless of any transfer,

assignment or endorsement of this Note.

18.      JOINT

AND SEVERAL LIABILITY.  Each of the Undersigned agrees that it is

liable, jointly and severally with each other Undersigned, for the payment of

this Note and all other obligations of the Undersigned under the Loan Agreement,

and that the Holder can enforce such obligations against any Undersigned, in

the Holder’s sole and unlimited discretion. 

Without in any way limiting the generality of the foregoing, each of the

Undersigned acknowledges and agrees to the provisions of the Loan Agreement and

by this reference hereby incorporates such provisions herein as though

expressly set forth herein.

19.      WAIVER

OF JURY TRIAL.  The Undersigned hereby irrevocably waives

any and all right to trial by jury in any legal proceeding arising out of or

relating to this Note or any of the documents executed in connection therewith

or the transactions contemplated hereby or thereby.

                Executed as of the date first

above written.

 

	

  “PDS”

  	

  “PDS-NV”

  
	

   

  	

   

  
	

  PDS

  GAMING CORPORATION

  	

  PDS

  GAMING CORPORATION-

  
	

   

  	

  NEVADA

  
	

   

  	

   

  
	

  By:

  	

  s/ Peter D. Cleary

  	

   

  	

  By:

  

  	

  s/ Peter D. Cleary

  	

   

  
	

  Print

  Name: 

  	

  Peter

  D. Cleary

  	

   

  	

  Print

  Name: 

  	

  Peter

  D. Cleary

  	

   

  
	

  Its:

  

  	

  President

  	

   

  	

  Its:

  

  	

  President

  	

   

  
											

 

[Signatures continued on next page]

 

5

 

 

	

  “PDS-CO”

  	

  “PDS-MS”

  
	

   

  	

   

  
	

  PDS

  GAMING CORPORATION-

  	

  PDS

  GAMING CORPORATION-

  
	

  COLORADO

  	

  MISSISSIPPI

  
	

   

  	

   

  
	

  By:

  	

  s/ Peter D. Cleary

  	

   

  	

  By:

  

  	

  s/ Peter D. Cleary

  	

   

  
	

  Print

  Name: 

  	

  Peter

  D. Cleary

  	

   

  	

  Print

  Name: 

  	

  Peter

  D. Cleary

  	

   

  
	

  Its:

  

  	

  President

  	

   

  	

  Its:

  

  	

  President

  	

   

  
											

 

 

6

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