NOTE
$20,000,000 July 28, 1997
FOR VALUE RECEIVED, the undersigned, MEDCATH INCORPORATED, a North Carolina
corporation (the "Borrower"), hereby promises to pay to the order of
NationsBank, N.A., a national banking association (the "Bank"), at the times, at
the place and in the manner provided in the Credit Agreement hereinafter
referred to, the principal sum of up to Twenty Million Dollars ($20,000,000),
or, if less, the aggregate unpaid principal amount of all Loans disbursed by the
Bank under the Credit Agreement referred to below, together with interest at the
rates as in effect from time to time with respect to each portion of the
principal amount hereof, determined and payable as provided in the Credit
Agreement.
This Note is a Revolving Credit Note referred to in, and is entitled to the
benefits of, the Credit Agreement dated as of July 28, 1997 (as amended,
restated or otherwise modified, the "Credit Agreement"), by and among the
Borrower, the lenders (including the Bank) referred to therein (the "Lenders")
and NationsBank, N.A., as Agent. The Credit Agreement contains, among other
things, provisions for the time, place and manner of payment of this Note, the
determination of the interest rate borne by and fees payable in respect of this
Note, acceleration of the payment of this Note upon the happening of certain
stated events and the mandatory repayment of this Note under certain
circumstances.
The Borrower agrees to pay on demand all costs of collection, including
reasonable attorneys' fees, if any part of this Note, principal or interest, is
collected after maturity with the aid of an attorney.
Presentment for payment, notice of dishonor, protest and notice of protest
are hereby waived.
THIS NOTE IS MADE AND DELIVERED IN THE STATE OF NORTH CAROLINA AND SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NORTH
CAROLINA.
The Debt evidenced by this Note is senior in right of payment to all
Subordinated Debt referred to in the Credit Agreement.
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed under
seal by a duly authorized officer as of the day and year first above written.
MEDCATH INCORPORATED
[CORPORATE SEAL]
By: /s/ Xxxxxxx X. Post
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Name: Xxxxxxx X. Xxxx
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Title: Chief Financial
Officer
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