EXHIBIT 10.28
REVOLVING CREDIT NOTE
$27,500,000.00 Tampa, Florida
April 15, 2002
FOR VALUE RECEIVED, the undersigned, DIGITAL LIGHTWAVE, INC., a Delaware
corporation ("Maker"), promises to pay to the order of WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association ("Lender"), in lawful money of the
United States of America, in immediately available funds, at 000 Xxxxx Xxxxxx
Xxxxx, Xxxxx 0000, Xxxxx, Xxxxxxx 00000 or at such other location as the Lender
may designate from time to time, the principal sum of TWENTY-SEVEN MILLION
FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($27,500,000.00), or so much thereof
as may be advanced and remain outstanding, together with interest on the unpaid
principal balance at the rate and on the terms provided in this Revolving
Credit Note.
This Revolving Credit Note ("Note") is the Revolving Credit Note referred
to in, issued pursuant to, and secured by, that certain Revolving Credit and
Security Agreement, dated of even date herewith between Lender and Maker (as
amended from time to time, "Credit Agreement"), the terms of which are
incorporated herein by reference. The Credit Agreement contains a provision,
among other things, for the acceleration of the stated maturity of this Note
upon the happening of certain events set forth therein. Capitalized terms,
unless otherwise defined herein, shall have the meaning given such terms in the
Credit Agreement.
1. INTEREST
(a) Interest Rate. Interest shall accrue on the average daily
outstanding principal balance hereof from the date of advancement thereof at a
variable rate, based upon a year of 360 days and actual days elapsed, equal to
the Contract Rate, as hereinafter defined, subject to availability.
(b) Certain Defined Terms. As used herein, the following terms
shall have the following meanings:
(i) "Business Day" shall mean any day on which the Lender's
offices in Tampa, Florida, are open for business. Unless specifically denoted
"Business Days" herein, references to "days" shall mean calendar days.
(ii) "Business Day Convention" shall mean the convention for
adjusting any relevant date if it would otherwise fall on a day that is not a
Business Day. If "Modified Following" is specified, that date will be the
first following day that is a Business Day unless that day falls in the next
calendar month, in which case that date will be the first preceding day that is
a Business Day.
(v) The "Contract Rate" shall mean the 1 Month LIBOR Market
Index Rate plus .70% (70 basis points), as that rate may change from day to
day.
(vi) A "LIBOR Period" shall mean a one month period, but in
no event shall exceed in duration the remainder of the term of the loan
evidenced hereby.
(vii) The "1 Month LIBOR Market Index Rate" shall mean for
any day, the rate for one (1) month U.S. dollar deposits as reported on
Telerate page 3750 as of 11:00 a.m., London time, on such day, or if such day
is not a London business day, then the immediately preceding London business
day (or if not so reported, then as determined by Bank from another recognized
source or interbank quotation).
(ix) The "Prime Rate" shall mean a variable rate per annum
which equals the rate of interest announced from time to time by Lender as its
prime rate, but which is not necessarily the lowest or best rate offered
thereby at any time, such interest rate to change automatically from time to
time, effective as of the effective date of each change in the prime rate.
(c) Limitations on LIBOR; Compensation for Increased Costs. If
at any time prior to the proposed commencement of a LIBOR Period, Lender shall
have determined in good faith (which determination shall be conclusive) and
shall have given notice to Maker that it has become impractical for Lender to
continue to offer the Contract Rate to Maker or that Xxxxxx's ability to
continue to offer the Contract Rate to Maker has been materially adversely
affected because: (i) by reason of circumstances affecting the London
Interbank Eurodollar Market, adequate and fair means do not exist for
ascertaining the rate of interest to be applicable during such LIBOR Period;
(ii) deposits in U.S. Dollars for the duration of such LIBOR Period are not
available to Lender in the London Interbank Eurodollar Market in sufficient
amounts in the ordinary course of business; or (iii) the London Interbank
Offered Rate will not compensate Lender for the cost to Lender of the funds to
be used by it to fund the loan evidenced hereby during such LIBOR Period;
then, from the date of such determination or after the end of such period as
Lender, in its discretion, shall have agreed, the entire outstanding principal
balance hereof shall accrue interest at a rate ("Adjusted Rate"), based on the
Prime Rate or another index selected by Lender, which Adjusted Rate would have,
until the date of such determination, resulted in the same amount of interest
having been charged under the Loan as was charged using the Contract Rate.
Notwithstanding anything herein contained, if at any time while any principal
remains outstanding hereunder, Lender determines in good faith (which
determination shall be conclusive) and notifies Maker that, by reason of any
law, regulation, treaty or official directive, or any change therein or in the
interpretation or application thereof, by the authority charged with the
administration thereof or by any court, it is unlawful or impracticable for
Lender to continue to maintain or offer the Contract Rate or to give effect to
any of its related obligations as contemplated hereby, Lender, by such notice,
may declare that the entire outstanding principal balance hereof, together with
all accrued and unpaid interest thereon to the date of repayment, shall
forthwith or at the end of such period as Lender, in its discretion, shall have
agreed, accrue interest at the Adjusted Rate.
Maker shall reimburse Lender for all losses or expenses incurred by
Xxxxxx as a result of (i) Maker's failure to pay any sum due hereunder on its
due date, (ii) repayment of any portion of the loan evidenced hereby prior to
the end of the applicable LIBOR Period, or (iii) any acceleration of the due
date of the loan evidenced hereby pursuant hereto.
(d) Taxation, Capital Adequacy and Other Increases in Cost of
Maintaining LIBOR Rate. If there occurs any future law, regulation, treaty or
official directive (whether or not having the force of law) or any change in
applicable present or future law, regulation, treaty or directive (whether or
not having force of law) or in the interpretation or application thereof by any
court or by any governmental or other authority or entity charged with the
administration thereof which now or hereafter shall:
(i) subject Lender to any tax of any kind whatsoever with
respect to this Note or any outstanding principal
hereunder, or change the basis of taxation of payments
to Lender of principal, interest, fees or any other
amount payable hereunder (except for changes in the
rate of any franchise tax or tax on the capital or
overall net income of Lender imposed by the laws of the
United States, or any state thereof, or taxing
authority therein);
(ii) impose, modify or make applicable any reserve, special
deposit or similar requirement against assets held by,
or deposits or other liabilities in or for the account
of, or any other acquisition of funds by, Lender; or
(iii) impose on Lender or the London Interbank Eurodollar
Market any other condition, restriction or limitation;
and the result of any of the foregoing is to increase the cost to Lender of
maintaining or offering the Contract Rate or to reduce any amount receivable
hereunder with respect thereto, then, in any such case, at Maker's election,
either (1) Maker shall promptly pay to Lender, upon demand such additional
amounts necessary to compensate Lender for such additional cost or reduced
amount received which Lender deems to be material as are determined in good
faith by Lender or (2) thereafter, all amounts outstanding under the loan
evidenced hereby shall commence accruing interest at the Prime Rate upon
expiration of each LIBOR Period then in effect with respect to any portion of
the loan evidenced hereby. If Xxxxxx becomes entitled to claim any additional
amounts pursuant to this clause, it shall promptly notify Maker of the event by
reason of which it has become so entitled.
(e) Maximum Amount of Interest. It is the intention of Maker and
Lender to conform strictly to the interest law applicable to this loan
transaction. Accordingly, it is agreed that notwithstanding any provisions to
the contrary in this Note, or in any of the documents securing payment hereof
or otherwise relating hereto, the aggregate of all interest and any other
charges or consideration constituting interest under the applicable interest
law that is taken, reserved, contracted for, charged or received under this
Note or under any of the other aforesaid agreements or otherwise in connection
with this loan transaction shall under no circumstances exceed the maximum
amount of interest allowed by the interest law applicable to this loan
transaction. If any excess of interest in such respect is provided for, in
this Note or in any of the documents securing payment hereof or otherwise
relating hereto, then, in such event, (i) the provisions of this paragraph
shall govern and control, (ii) neither Maker nor Maker's heirs, legal
representatives, successors or assigns shall be obligated to pay the amount of
such interest to the extent that it is in excess of the maximum amount of
interest allowed by the interest law applicable to this loan transaction, (iii)
any excess shall be deemed a mistake and cancelled automatically and, if
theretofore paid, shall be credited on this Note by Xxxxxx (or if this Note
shall have been paid in full, refunded to Maker), and (iv) the effective rate
of interest shall be automatically subject to reduction to the maximum legal
rate of interest allowed under such interest law as now or hereafter construed
by courts of appropriate jurisdiction. To the extent permitted by the interest
law applicable to this loan transaction, all sums paid or agreed to be paid to
Lender for the use, forbearance or detention of the indebtedness evidenced
hereby shall be amortized, prorated, allocated and spread throughout the full
term of this Note.
2. PAYMENT TERMS.
(a) Beginning on July 15, 2002, and continuing on the 15 day of
each October, January, April and July thereafter, through and including January
15, 2005, Borrower shall pay to Lender all accrued interest under this Note.
Lender, at its option, may debit from Borrower's account: ABA #000-000-000,
Account # 2000007273456, all accrued and unpaid interest due and owing on any
payment date specified above. Maker hereby authorizes Xxxxxx to debit the
account referenced above for the payment of accrued but unpaid interest.
(b) On April 15, 2005, Xxxxxxxx shall pay the entire outstanding
principal balance under this Note, together with accrued and unpaid interest
and other charges.
(c) Notwithstanding any term herein to the contrary or any term
of any Other Agreements, upon the occurrence of an Event of Default, Lender
shall have the right to demand immediate payment of the entire outstanding
principal balance hereof, together with all accrued and unpaid interest and
charges thereon.
3. REVOLVING NOTE. Subject to the limitations herein and in the
Credit Agreement, Maker may, during the term of this Note, borrow, prepay and
reborrow the principal amount of this Note.
4. DEFAULT RATE. Upon any Event of Default, and continuing until the
Event of Default is cured, the outstanding principal of the loan and all other
indebtedness evidenced hereby shall bear interest at a rate per annum,
calculated on the basis of a 360-day year and days actually elapsed, equal to
the Contract Rate (or, if applicable, the Adjusted Rate) plus two percent
(2.0%), payable on demand, which rate shall apply as well before as after
judgment.
5. MISCELLANEOUS.
(a) If any payment of principal or interest on this Note shall
become due on a Saturday, Sunday or on any other day on which banks in Tampa,
Florida, are not open for business, such payment shall be made on the
immediately preceding Business Day.
(b) All payments received by Xxxxxx xxxxxxxxx shall be applied
first to unpaid interest and other charges and costs payable by Maker and
second to the principal balance hereof.
(c) Maker hereby waives presentment, demand, protest and notice
of any kind in connection with this Note.
(d) This Note shall bind Maker and its successors and assigns,
and the benefits hereof shall inure to the benefit of Lender and its successors
and assigns. All references herein to the "Maker" and "Lender" shall be deemed
to apply to the Maker and Lender, respectively, and their respective successors
and assigns.
(e) This Note, for all purposes, shall be governed by, and
construed in accordance with, the laws of the State of Florida. In the event
any provision of this Note shall be prohibited or invalid under applicable law,
such provision shall be ineffective to the extent of such prohibition or
invalidity without invalidating the remainder of such provision or the
remaining provisions of this Note.
6. ARBITRATION. All parties to this Note agree as follows:
(a) Upon demand of any party hereto, whether made before or after
institution of any judicial proceeding, any claim or controversy arising
out of, or relating to this Note between the parties hereto ("Dispute")
shall be resolved by binding arbitration conducted under and governed by
the Commercial Finance Disputes Arbitration Rules ("Arbitration Rules")
of the American Arbitration Association ("AAA") and the Federal
Arbitration Act. Disputes may include, without limitation, tort claims,
counterclaims, disputes as to whether a matter is subject to arbitration,
claims brought as class actions, or claims arising from documents
executed in the future. A judgment upon the award may be entered in any
court having jurisdiction. Notwithstanding the foregoing, this
arbitration provision does not apply to disputes under or related to swap
agreements.
(b) All arbitration hearings shall be conducted in the city in
which the office of Lender is located. A hearing shall begin within 90
days of demand for arbitration, and all hearings shall be concluded
within 120 days of demand for arbitration. These time limitations may
not be extended unless a party shows cause for extension and then for no
more than a total of 60 days. The expedited procedures set forth in Rule
51 et seq. of the Arbitration Rules shall be applicable to claims of less
than $1,000,000.00. Arbitrators shall be licensed attorneys selected
from the Commercial Financial Dispute Arbitration Panel of the AAA. The
parties do not waive applicable Federal or state substantive law except
as provided herein.
(c) Notwithstanding the preceding binding arbitration provisions,
the parties agree to preserve, without diminution, certain remedies that
any party may exercise before or after an arbitration proceeding is
brought. The parties shall have the right to proceed in any court of
proper jurisdiction or by self-help to exercise or prosecute the
following remedies as applicable: (i) all rights to foreclose against
any real or personal property or other security by exercising a power of
sale or under applicable law by judicial foreclosure including a
proceeding to confirm the sale; (ii) all rights of self-help including
peaceful occupation of real property and collection of rents, set-off,
and peaceful possession of personal property; (iii) obtaining provisional
or ancillary remedies including injunctive relief, sequestration,
garnishment, attachment, appointment of receiver and filing an
involuntary bankruptcy proceeding; and (iv) when applicable, a judgment
by confession of judgment. Any claim or controversy with regard to any
party's entitlement to such remedies is a Dispute. Each party agrees
that it shall not have a remedy of punitive or exemplary damages against
the other in any Dispute and hereby waive any right or claim to punitive
or exemplary damages they have now or which may arise in the future in
connection with any Dispute, whether the Dispute is resolved by
arbitration or judicially.
IN WITNESS WHEREOF, Xxxxx has executed this Note on the date first above
written.
DIGITAL LIGHTWAVE, INC., a Delaware
corporation
By:
Name:
Title:
[CORPORATE SEAL]
#.