REVOLVING PROMISSORY NOTE
$2,000,000.00 ___________, New York
March 31, 1998
FOR VALUE RECEIVED, U.S. Automotive Manufacturing, Inc., a Delaware
corporation, having an address at Route 000, Xxxxxxx Xxxxx, Xxxxxxxxxxx,
Xxxxxxxx 00000 ("Borrower"), promises to pay to the order of _______________,
("Lender"), the lesser of the aggregate unpaid principal sum of all Advances (as
shown in the attached schedule) made to Borrower by Lender pursuant to the
Revolving Credit Agreement, dated as of March 31, 1998 (the "Credit Agreement"),
on the Maturity Date and Two Million ($2,000,000) on demand after April 1, 1999,
together with interest, in arrears, from the date hereof on the unpaid balance
from time to time outstanding, before maturity of or default under this Note at
the rate of eleven percent (11%) per annum and, after the maturity of or default
under this note at the rate of fifteen percent (15%) per annum. Accrued and
unpaid interest only shall be payable monthly beginning August 1, 1998. All
accrued and unpaid interest shall be payable in full with the payment of the
principal.
All sums payable hereunder are payable at Xxxxxx's mailing address of
_________________________________, or such other place or places as Lender, its
successors or assigns ("Holder") may designate.
This Note may be prepaid, in whole at any time, or in part from time to
time without penalty or premiums.
All sums paid under this Note shall be applied first to any interest and
then any unpaid principal, with the remaining balance, if any, to be applied to
fees, expenses and other charges then due and unpaid.
All capitalized terms not otherwise defined herein shall have the meaning
ascribed to such term in the Credit Agreement.
The occurrence of any or more of the following events will constitute an
"Event of Default" hereunder:
1. Nonpayment of any interest due under this note when it shall
become due and payable (no prior demand therefore being
necessary), which nonpayment shall have continued for more than
ten (10) days.
2. Nonpayment of any principal due under this note when it shall
become due and payable, which nonpayment shall have continued for
more than ten (10) days.
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3. The dissolution, liquidation, or termination of existence of
Borrower or a sale of assets of Borrower out of the ordinary
course of business.
4. The merger or consolidation with any corporation or other entity
by Borrower, where Borrower is not the surviving entity other
than a merger or consolidation of the Borrower with and into a
wholly-owned subsidiary.
5. Entry of an order of relief of Borrower in any federal bankruptcy
proceeding or any order or proceeding of similar effect under any
state insolvency or receivership law.
6. Failure to maintain Collateral in the Company having an aggregate
value of at least 150% of the Credit Facility, which failure is
not cured within ten (10) days.
Upon the occurrence of any Event of Default, this Note, at the option of
the Holder, shall become immediately due and payable without presentment,
demand, protest or notice of any kind, all of which are hereby waived by
Xxxxxxxx. Holder's failure to exercise such option shall not constitute a waiver
of the right to exercise it at any time.
Borrower will pay all legal and other fees and expenses reasonably incurred
by Holder in connection with or incidental to the enforcement of any of the
obligations of Borrower or rights of Holder under this Note, and all such fees
and expenses shall be indebtedness under this Note.
Notwithstanding anything to the contrary contained in this note, the Holder
shall not be permitted to charge, take or receive, and the Borrower shall not be
obligated to pay, any interest in excess of the maximum rate from time to time
permitted by applicable law.
This Note may not be modified or terminated orally.
For all purposes, this Note shall be enforced and construed in accordance
with the substantive law of New York, without resort to the conflict of laws and
rules of each state.
U.S. AUTOMOTIVE MANUFACTURING, INC.
By:
--------------------------------------
Name:
Title:
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Schedule Attached to Revolving Promissory Note
in the amount of $2,000,000
====================================================================================================================================
DATE OF INTEREST AMOUNT UNPAID PRINCIPAL DATE OF NOTATION
ADVANCE RATE OF AMOUNT OF BALANCE MATURITY MADE BY
(% p.a.) ADVANCE REPAYMENT OF LOAN
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