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COMMERCIAL LOAN AGREEMENT
($200,000.00 Facility)
This Agreement is made as of this 23rd day of October, 1999, by and
between People's Bank (the "Lender") and XXXXXXX INTERNATIONAL, LTD. (the
"Borrower").
WHEREAS, by commitment letter dated August 27, 1999 as modified by
Borrower's letter to the Bank dated September 2, 1999 and as further modified by
a letter signed by Bank and Borrower dated October 23,1999, (the "Commitment
Letter"), Lender committed to lend to Borrower the sum of $220,000.00 upon
certain terms and conditions, which Commitment Letter is herein incorporated by
reference.
WHEREAS, the Commitment Letter contemplated the drafting of a Loan
Agreement to stand as one of the Loan Documents; and
WHEREAS, the parties are agreeable to the Commitment Letter standing as
the Loan Agreement.
NOW, THEREFORE, in consideration of the making of the loan described in
the Commitment Letter, the parties agree as follows:
1. The Commitment Letter shall survive the closing of the loan
and its terms shall continue in full force and effect as the Commercial Loan
Agreement until the
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loan is paid in full.
2. The attached Pledge Agreement and Rider to Pledge Agreement
attached hereto as Exhibits A-1 and A-2, respectively, shall be used in
connection with each Letter of Credit issued pursuant to the terms of the
Commitment Letter.
3. To the extent any condition precedent to the closing of the
loan has not been satisfied as of this date, the closing of same does not
constitute a waiver of Lender's rights with respect to Borrower's compliance
with same in the future unless such is specifically waived in writing by Lender.
4. Failure of Borrower to keep or perform any of the
agreements, covenants or provisions contained in the Commitment Letter shall be
deemed a default under the Note, the Mortgage and the other Loan Documents.
IN WITNESS WHEREOF, the undersigned have set their hands and seals as
of the day first above written.
PEOPLE'S BANK
By Xxxxxx X. Xxxxxx
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Its Vice President
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XXXXXXX INTERNATIONAL, LTD.
By /s/ Xxxxxxx X. Xxxxxxx
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Its Chief Financial Officer
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