Exhibit (10)(a)(iii)
AMENDED AND RESTATED
TERM NOTE
$25,410,168.93 Chicago, Illinois
October 30, 1996
FOR VALUE RECEIVED, the undersigned, HAUPPAUGE RECORD MANUFACTURING LTD.,
a New York corporation ("Borrower"), hereby unconditionally promises to pay to
the order of AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO ("Lender") at
the office of Lender at 00 Xxxxx XxXxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000 or at
such other place as the holder of this Note may from time to time designate in
writing, in lawful money of the United States of America and in immediately
available funds, the principal sum of TWENTY-FIVE MILLION FOUR HUNDRED TEN
THOUSAND ONE HUNDRED SIXTY-EIGHT AND 93/100 DOLLARS ($25,410,168.93). This Note
is referred to in and was executed and delivered pursuant to that certain
Amended and Restated Loan and Security Agreement dated as of October 30, 1996
between Borrower and Lender (as amended, modified or supplemented from time to
time, the "Loan Agreement"), to which reference is hereby made for a statement
of the terms and conditions under which the loans evidenced hereby were made and
are to be repaid. All terms which are capitalized and used herein (which are not
otherwise specifically defined herein) and which are defined in the Loan
Agreement shall be used in this Note as defined in the Loan Agreement.
Borrower further promises to pay interest on the unpaid principal amount
hereof from time to time outstanding at a fluctuating rate per annum equal to
the Base Rate as from time to time in effect plus one and one-half of one
percent (1.50%), provided that following the occurrence and during the
continuance of a Default, Borrower shall pay interest from the date of such
Default (or, in the event of a Default other than as described in subsections
9.1(A), (H), or (I)
of the Loan Agreement, from the date of notice to such effect from Lender) at
the rate set forth above plus an additional three percent (3.00%) per annum.
Interest shall be payable on the dates provided for in the Loan Agreement, and
shall be calculated on the basis of a 360-day year for the actual number of days
elapsed.
If any payment hereunder becomes due and payable on a day other than a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day, and interest shall be payable thereon during such extension at the
rate specified above. In no contingency or event whatsoever shall interest
charged hereunder, however such interest may be characterized or computed,
exceed the highest rate permissible under any law which a court of competent
jurisdiction shall, in a final determination, deem applicable hereto. In the
event that such a court determines that Xxxxxx has received interest hereunder
in excess of the highest rate applicable hereto, Lender shall promptly refund
such excess interest to Borrower.
The principal indebtedness evidenced hereby shall be payable in
consecutive monthly installments commencing on October 31, 1996 and continuing
on the last day of each calendar month thereafter until this Note is paid in
full, each such installment to be in the amount set forth opposite the date
scheduled for payment on Schedule 1 attached hereto.
Under certain circumstances described in the Loan Agreement, Borrower is
required to make certain prepayments on this Note. The principal amount hereof
may not be prepaid at any time in whole or in part, except as provided in the
Loan Agreement.
Payments received by Lender on this Note shall be applied as provided in
the Loan Agreement and may be applied to the payment of interest which is due
and payable before application to the outstanding principal balance hereof,
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subject to Xxxxxx's rights to otherwise apply such payments as provided in the
Loan Agreement.
Upon and after the occurrence of a Default or as otherwise provided in the
Loan Agreement, this Note may, at the option of Lender, and without prior
demand, notice or legal process of any kind (except as otherwise expressly
required in the Loan Agreement), be declared, and thereupon immediately shall
become, due and payable. This Note shall also become immediately due and payable
upon the termination of the Loan Agreement.
Xxxxxxxx, and all endorsers and other persons obligated hereon, hereby
waive presentment, demand, protest, notice of demand, notice of protest and
notice of nonpayment and agree to pay all costs of collection, including
reasonable attorneys' fees and expenses.
This Note has been delivered at and shall be deemed to have been made at
Chicago, Illinois and shall be interpreted and the rights and liabilities of the
parties hereto determined in accordance with the internal laws (as opposed to
conflicts of law provisions) of the State of Illinois. Whenever possible each
provision of this Note shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Note shall be
prohibited by 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.
Whenever in this Note reference is made to Lender or Borrower, such
reference shall be deemed to include, as applicable, a reference to their
respective successors and assigns. The provisions of this Note shall be binding
upon and shall inure to the benefit of said successors and assigns. Xxxxxxxx's
successors and assigns shall include, without limitation, a receiver, trustee or
debtor in possession of or for Borrower.
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The unpaid balance of the indebtedness hitherto evidenced by that certain
Xxxxxxx and Restated Term Note dated January 10, 1995 made by Borrower to the
order of Lender in the principal amount of $13,277,571, that certain Additional
CAPEX Note dated January 10, 1995 made by Borrower to the order of Lender in the
principal amount of $2,000,000, that certain New CAPEX Note dated August 31,
1995 made by Borrower to the order of Lender in the principal amount of
$5,600,000, that certain Term Note dated January 24, 1995 made by AFL to the
order of Lender in the principal amount of $14,625,000 which was assumed by
Xxxxxxxx as a result of the Merger and that certain CAPEX Note dated January 24,
1995 made by AFL to the order of Lender in the principal amount of $3,000,000
which was assumed by Xxxxxxxx as a result of the Merger (collectively, the
"Original Notes"), and evidencing part of the obligations under the Hauppauge
LSA and the AFL LSA, remains outstanding as of the date hereof and shall
continue to be secured pursuant to the terms of the Loan Agreement and the other
agreements executed in connection therewith or in connection with the Hauppauge
LSA or the AFL LSA. The principal balance of this Note evidences indebtedness
hitherto evidenced by the Original Notes and this Note (i) merely re-evidences
the indebtedness hitherto evidenced by the Original Notes, (ii) is given in
substitution for, and not as payment of, the Original Notes and (iii) is in no
way intended to constitute a novation of the Original Notes.
HAUPPAUGE RECORD
MANUFACTURING LTD.
By: /s/ Xxxxxxx Xxxxxxxx
-------------------------------
Name: Xxxxxxx Xxxxxxxx
-----------------------------
Title: Vice President-Finance
----------------------------
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SCHEDULE 1
TO
AMENDED AND RESTATED
TERM NOTE
--------------------------------------------------------------------------------
Payment Date Amount
--------------------------------------------------------------------------------
10/31/96 $556,462.01
--------------------------------------------------------------------------------
11/30/96 $548,053.68
--------------------------------------------------------------------------------
12/31/96 $548,053.68
--------------------------------------------------------------------------------
01/31/97 $548,053.68
--------------------------------------------------------------------------------
02/28/97 $548,053.68
--------------------------------------------------------------------------------
03/31/97 $548,053.68
--------------------------------------------------------------------------------
04/30/97 $548,053.68
--------------------------------------------------------------------------------
05/31/97 $548,053.68
--------------------------------------------------------------------------------
06/30/97 $548,053.68
--------------------------------------------------------------------------------
07/31/97 $548,053.68
--------------------------------------------------------------------------------
08/31/97 $548,053.68
--------------------------------------------------------------------------------
09/30/97 $548,053.68
--------------------------------------------------------------------------------
10/31/97 $548,053.68
--------------------------------------------------------------------------------
11/30/97 $548,053.68
--------------------------------------------------------------------------------
12/31/97 $548,053.68
--------------------------------------------------------------------------------
01/31/98 $548,053.68
--------------------------------------------------------------------------------
02/28/98 $548,053.68
--------------------------------------------------------------------------------
03/31/98 $548,053.68
--------------------------------------------------------------------------------
04/30/98 $548,053.68
--------------------------------------------------------------------------------
05/31/98 $548,053.68
--------------------------------------------------------------------------------
06/30/98 $548,053.68
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
07/31/98 $548,053.68
--------------------------------------------------------------------------------
08/31/98 $548,053.68
--------------------------------------------------------------------------------
09/30/98 $548,053.68
--------------------------------------------------------------------------------
10/31/98 $548,053.68
--------------------------------------------------------------------------------
11/30/98 $548,053.68
--------------------------------------------------------------------------------
12/31/98 $548,053.68
--------------------------------------------------------------------------------
01/31/99 $548,053.68
--------------------------------------------------------------------------------
02/28/99 $548,053.68
--------------------------------------------------------------------------------
03/31/99 $548,053.68
--------------------------------------------------------------------------------
04/30/99 $548,053.68
--------------------------------------------------------------------------------
05/31/99 $548,053.68
--------------------------------------------------------------------------------
06/30/99 $548,053.68
--------------------------------------------------------------------------------
07/31/99 $548,053.68
--------------------------------------------------------------------------------
08/31/99 $548,053.68
--------------------------------------------------------------------------------
09/30/99 $548,053.68
--------------------------------------------------------------------------------
10/31/99 $548,053.68
--------------------------------------------------------------------------------
11/30/99 $548,053.68
--------------------------------------------------------------------------------
12/31/99 $548,013.68
--------------------------------------------------------------------------------
01/31/00 $372,290.68
--------------------------------------------------------------------------------
02/28/00 $294,719.68
--------------------------------------------------------------------------------
03/31/00 $294,719.68
--------------------------------------------------------------------------------
04/30/00 $294,719.68
--------------------------------------------------------------------------------
05/31/00 $281,711.57
--------------------------------------------------------------------------------
06/30/00 $277,141.35
--------------------------------------------------------------------------------
07/31/00 $277,141.15
--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------
08/31/00 $263,274.48
--------------------------------------------------------------------------------
09/30/00 $227,608.01
--------------------------------------------------------------------------------
10/31/00 $227,608.01
--------------------------------------------------------------------------------
11/30/00 $1,216,772.79
--------------------------------------------------------------------------------
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