EXHIBIT 10.5
AMENDED AND RESTATED REVOLVING CREDIT NOTE
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$40,000,000 Dated: July 1, 1996
FOR VALUE RECEIVED, the undersigned, NATIONAL AMERICAN CORPORATION, a Nevada
corporation ( "Borrower"), hereby promises to pay to the order of THOUSAND
TRAILS, INC., a Delaware corporation and the successor by merger to USTRAILS
INC. ("Lender"), the principal sum of FORTY MILLION DOLLARS ($40,000,000) or, if
less, the aggregate principal amount as may from time to time be outstanding of
the Revolving Advances (as hereinafter defined) made by the Lender to the
Borrower pursuant to the Credit Agreement (as hereinafter defined) on the terms
and in the amounts as set forth in the Credit Agreement together with interest
on the unpaid principal balance of each Revolving Advance from the date of such
Advance until said principal amount is paid in full. On the Termination Date,
the Borrower shall repay in full all then outstanding obligations under the
Loans including the principal amount of all then outstanding Revolving Credit
Loans. The Borrower shall pay interest on the unpaid principal amount of this
Revolving Credit Note, from the date hereof until such principal amount shall be
paid in full, at the following rates per annum, payable monthly in arrears on
the last day of each month, and on the date principal is due, whether at stated
maturity, on acceleration or otherwise (provided that interest on any past due
payment shall be payable on demand): a rate per annum equal at all times to (x)
the lesser of (i) nine percent (9%) per annum, or (ii) the Highest Lawful Rate:
provided, however, upon the occurrence and during the continuance of an Event of
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Default, interest on all outstanding Revolving Credit Loans shall instead accrue
at a rate per annum equal at all times to (y) the lesser of (i) the Highest
Lawful Rate and (ii) 2% per annum above the rate per annum otherwise required to
be paid on such Revolving Advances pursuant to clause (x) above.
This Revolving Credit Note renews, restates and extends, and does not
extinguish, indebtedness in the amount of $18,241,711.98 representing the entire
unpaid principal balance under the Revolving Credit Note dated November 10, 1994
(the "1994 Credit Note"), made by Borrower in favor of Lender in the original
principal amount of $40,000,000.
This Revolving Credit Note shall constitute the Revolving Credit Note
referred to in, and is entitled to the benefits of and obligations pertaining
to, the Credit Agreement dated as of December 31, 1991 (as amended, the "Credit
Agreement"), between Borrower and Lender, and all liens, assignments and
security interests in connection therewith.
Both principal and interest are payable in lawful money of the United States
of America to the Lender at 0000 XXX Xxxxxxx, Xxxxx 000, Xxxxxx, Xxxxx 00000, in
same day funds. Each Revolving Advance made by Lender to Borrower pursuant to
the Credit Agreement and all payments made on account of principal hereof shall
be recorded by Xxxxxx and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Revolving Credit Note.
Borrower hereby waives presentment, notice of dishonor and protest.
The Credit Agreement, among other things, (i) provides for the making of
advances (the "Revolving Advances") by Xxxxxx to Borrower from time to time in
an aggregate amount not to exceed at any time outstanding the U.S. dollar amount
first above mentioned, the indebtedness of Borrower resulting from each such
Revolving Advance being evidenced by this Revolving Credit Note, (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain
stated events and also for prepayments on account of principal hereof prior to
the maturity hereof upon the terms and conditions therein specified, and (iii)
provides that the obligations of Borrower under the Credit Agreement, including
obligations under this Note, are secured by the Guaranty, the Security
Agreement, the Mortgages and the other Loan Documents (other than this Note and
the Term Loan Note), which are hereby ratified, confirmed, brought forward,
renewed, extended and rearranged, as security for the payment of this Amended
and Restated Revolving Credit Note, in
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addition to and cumulative of all other security for this Note. All terms not
expressly defined herein shall have the same definitions as set forth in the
Credit Agreement.
The validity, meaning, enforceability and effect of this Revolving Credit
Note shall be governed by the laws of the State of Texas.
NATIONAL AMERICAN CORPORATION
By: s/Xxxxx X. Xxxxx, Xx.
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Its: Vice President
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REVOLVING CREDIT NOTE (Cont'd)
ADVANCES AND PAYMENTS OF PRINCIPAL
Amount of
Amount of Principal Notation
Date Loan Repaid Made By
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7/1/96 $18,241,711.98
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