Exhibit 10.6
PROMISSORY NOTE
(Revolving Credit Loans)
$2,000,000 March 27, 1997
FOR VALUE RECEIVED, the undersigned, THT Inc., Setterstix Corporation
and Jackburn Mfg., Inc. (each being a "Borrower" and, collectively, the
--------
"Borrowers"), hereby promise, jointly and severally, to pay to the order of
----------
FLEET BANK N.A. (the "Bank"), on the Revolving Credit Expiration Date, (as such
---- --------------------------------
term is defined in the Credit Agreement referred to below) at the office of the
Bank at 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx (or at such other place
as the holder of this Note shall designate by a notice in writing to the
Borrowers), the principal sum of TWO MILLION DOLLARS ($2,000,000), or such
lesser amount as shall equal the aggregate unpaid principal amount of the
Revolving Credit Loans made by the Bank to the Borrowers pursuant to the Credit
Agreement, in lawful money of the United States of America and in immediately
available funds, and to pay interest on the unpaid principal balance hereof from
time to time outstanding at the aforesaid office or place and at the rates and
on the dates specified in the Credit Agreement.
The Bank is hereby authorized by the Borrowers to endorse on the
schedule attached to this Note (or any continuation thereof) the amount of each
Revolving Credit Loan made by the Bank to the Borrowers pursuant to the Credit
Agreement, the date such Revolving Credit Loan is made and the amount of each
payment or prepayment of the principal of such Revolving Credit Loan received by
the Bank, provided that any failure by the Bank to make any such endorsement
shall not affect the obligations of the Borrowers hereunder or under the Credit
Agreement in respect of such Revolving Credit Loan. Each such endorsement by
the Bank shall constitute conclusive evidence of the accuracy thereof, absent
manifest error.
If any amount hereunder is payable on a day that is not a Business
Day, the due date thereof shall be extended to the immediately succeeding
Business Day and interest thereon shall accrue during the period of such
extension at the rate provided in the Credit Agreement.
This Note is the Revolving Credit Note referred to in the Credit
Agreement dated as of March 27, 1997 (said Credit Agreement, as amended,
supplemented or modified from time to time, herein called the "Credit
------
Agreement") among the Borrowers and the Bank and evidences Revolving Credit
---------
Loans outstanding under the Credit Agreement made by the Bank to the Borrowers.
This Note is subject to acceleration in accordance with the provisions of the
Credit Agreement and is secured by the Security Documents and the Collateral
referred to in the Credit Agreement. The Borrowers may prepay or may be
required to prepay all or any part of the principal of this Note before maturity
upon the terms provided in the Credit Agreement. Capitalized terms used in this
Note and not defined herein have the respective meanings assigned to them in the
Credit Agreement.
This Note shall be governed by and construed in accordance with the
laws of the State of New York.
Very truly yours,
THT INC.
By: /s/ Xxxxxxxxx X. Xxxxxxxx
------------------------------
Name: Xxxxxxxxx X. Xxxxxxxx
Title: President
SETTERSTIX CORPORATION
By: /s/ Xxxxxxxxx X. Xxxxxxxx
------------------------------
Name: Xxxxxxxxx X. Xxxxxxxx
Title: Chief Executive Officer
JACKBURN MFG., INC.
By: /s/ Xxxxxxxxx X. Xxxxxxxx
------------------------------
Name: Xxxxxxxxx X. Xxxxxxxx
Title: President
Schedule to
Promissory Note dated
_________, 1997 of THT Inc.,
Setterstix Corporation, and Jackburn Mfg., Inc.
(collectively, the "Borrowers")
---------
This Note evidences Revolving Credit Loans made to the Borrowers under
the within-described Credit Agreement, in the principal amounts and on the dates
set forth below, and the repayments or prepayments of the principal of said
Revolving Credit Loans.
Principal Principal
Date of Amount of Amount Paid Balance Notation
Loan Loan or Prepaid Outstanding Made By
------- --------- ---------- ----------- -------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------
-------- ---------- ------------- ------------ ------------