EXHIBIT 10.3
PLATINUM ENTERTAINMENT, INC.
TERM CREDIT NOTE
$20,000,000 March 31, 1998
For value received, the undersigned, Platinum Entertainment, Inc., a
Delaware corporation (the "BORROWER") hereby promises to pay to the order of
Xxxxxx Trust and Savings Bank (the "LENDER"), at the principal office of Xxxxxx
Trust and Savings Bank in Chicago, Illinois the principal sum of Twenty Million
Dollars ($20,000,000), in installments as follows: eleven (11) consecutive
quarterly installments (commencing on June 1, 1998 and continuing on the first
day of each September, December, March and June occurring thereafter to and
including December 1, 2000) with all such installments (except the last such
installment) to be in an amount equal to $1,818,181.82 per installment and the
last such installment to be in an amount equal to $1,818,181.80 which shall be
the full amount of the then unpaid principal balance of this Note.
This Note evidences indebtedness constituting the "DOMESTIC RATE PORTION"
and "LIBOR PORTIONS" as such terms are defined in that certain Credit Agreement
dated as of December 12, 1997, currently by and among the Borrower, certain
Subsidiaries of the Borrower, Xxxxxx Trust and Savings Bank individually and as
Administrative Agent and certain lenders which are or may from time to time
become parties thereto (as amended, the "CREDIT AGREEMENT") made or to be made
to the Borrower by the Lender under the Term Credit provided for under the
Credit Agreement and the Borrower hereby promises to pay interest at the office
specified above on the loan evidenced hereby at the rates and times specified
therefor in the Credit Agreement. Capitalized terms used herein without
definition shall have the meanings ascribed to them in the Credit Agreement, and
this Note is subject to the terms of the Credit Agreement.
Any repayment of principal hereon, the status of indebtedness evidenced
hereby from time to time as part of the Domestic Rate Portion or a LIBOR Portion
and the interest rates and interest periods applicable thereto shall be endorsed
by the holder hereof on the reverse side of this Note or recorded on the books
and records of the holder hereof (provided that such entries shall be endorsed
on the reverse side hereof prior to any negotiation hereof) and the Borrower
agrees that in any action or proceeding instituted to collect or enforce
collection of this Note, the entries so endorsed on the reverse side hereof or
recorded on the books and records of the Lender shall be PRIMA FACIE evidence of
the unpaid balance of this Note and the status of indebtedness evidenced hereby
from time to time as part of the Domestic Rate Portion or a LIBOR Portion and
the interest rates and interest periods applicable thereto.
This Note is issued by the Borrower under the terms and provisions of the
Credit Agreement and is secured, inter alia, by certain security agreements and
other instruments and documents from the Borrower and certain of its
Subsidiaries, and this Note and the holder hereof are entitled to all of the
benefits and security provided for thereby or referred to therein, equally and
ratably with all other indebtedness thereby secured, to which
reference is hereby made for a statement thereof. This Note may be declared
to be, or be and become, due prior to its expressed maturity upon the
occurrence of an Event of Default specified in the Credit Agreement,
voluntary prepayments may be made hereon, and certain prepayments are
required to be made hereon, all in the events, on the terms and with the
effects provided in the Credit Agreement.
THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE
INTERNAL LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO PRINCIPLES OF CONFLICT
OF LAW.
The Borrowers hereby waive presentment for payment.
PLATINUM ENTERTAINMENT, INC.
By /s/ Xxxxxx Xxxxxx
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Name: Xxxxxx Xxxxxx
Title: President
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