Present Loans. The Borrowers acknowledge that they are justly and truly indebted to the Existing Lenders on the Present Loans in the principal amount of $3,000,000 plus accrued and unpaid interest thereon. Substantially concurrently herewith, the Company is executing and delivering to the Lenders the Revolving Credit Notes hereinafter identified and defined. Upon satisfaction of the conditions precedent to effectiveness set forth in Section 6 hereof, (i) the Revolving Credit Notes issued under this Agreement shall automatically, and without further action on the part of either the Lenders or the Borrowers, be deemed to be issued in substitution and replacement for the Prior Notes, and (ii) the existing L/C shall automatically, and without further action on the part of either the Agent, the Lenders or the Borrowers, be deemed Letters of Credit issued under this Agreement. The Present Loans shall, for all purposes of this Agreement, be treated as though they constituted Loans under this Agreement in an amount equal to the aggregate unpaid principal balance of the Present Loans outstanding on the date the conditions precedent to effectiveness set forth in Section 6 hereof have been satisfied or duly waived in writing by the Required Lenders. Simultaneously with such satisfaction or waiver of such conditions precedent, any commitments of the Departing Lenders under the Prior Credit Agreement shall terminate and any commitments of the Existing Lenders which are parties hereto as of the date hereof shall be reallocated among the Lenders in accordance with, and as so reallocated shall automatically be deemed to be, their Commitments hereunder.
Present Loans. The Company acknowledges that it is justly and truly indebted to the Existing Lenders on the Present Loans in the principal amount of $18,000,000.00 plus accrued and unpaid interest thereon. Substantially concurrently herewith, the Company is executing and delivering to the Lenders the Notes hereinafter identified and defined. Upon satisfaction of the conditions precedent to effectiveness set forth in Section 7 hereof, the Present Loans evidenced by the Prior Notes shall automatically, and without further action on the part of either the Lenders or the Company, become evidenced by the Notes issued under this Agreement to the Existing Lenders and, to that extent, such Notes are issued in renewal of, and evidence the same indebtedness formerly evidenced by, the Prior Notes, as well as evidencing all additional Loans made pursuant to this Agreement. Except as set forth in the last sentence of this paragraph, all of the Present Loans shall, for all purposes of this Agreement, be treated as though they constituted Loans under this Agreement in an amount equal to the aggregate unpaid principal balance of the Present Loans outstanding on such date. If any accrued and unpaid interest and commitment fees are outstanding in respect of any of the Present Loans as of the date that the Present Loans become evidenced by the Notes, such accrued interest shall be evidenced by the Notes and shall be due and payable on the first interest payment date applicable to the Notes and such accrued fees shall be payable on the first date on which the corresponding fees are due and payable under this Agreement. Simultaneously with such satisfaction of such conditions precedent, any commitment of the Existing Lenders under the Prior Credit Agreement shall terminate.
