EXHIBIT 10.7
TERM NOTE
$40,235 Pasadena, California
August 16, 2000
For value received, the undersigned, CXR TELCOM
CORPORATION, a Delaware corporation (the "BORROWER"), hereby promises to pay
on the Termination Date under the Credit Agreement (defined below), to the
order of XXXXX FARGO BUSINESS CREDIT, INC., a Minnesota corporation (the
"LENDER"), at its main office in Pasadena, California, or at any other place
designated at any time by the holder hereof, in lawful money of the United
States of America and in immediately available funds, the principal sum of
FORTY THOUSAND TWO HUNDRED THIRTY-FIVE DOLLARS ($40,235) or, if less, the
aggregate unpaid principal amount of the Term Advance made by the Lender to
the Borrower under the Credit Agreement (defined below) together with
interest on the principal amount hereunder remaining unpaid from time to
time, computed on the basis of the actual number of days elapsed and a
360-day year, from the date hereof until this Note is fully paid at the rate
from time to time in effect under the Credit and Security Agreement of even
date herewith (as the same may hereafter be amended, supplemented or restated
from time to time, the "CREDIT AGREEMENT") by and among the Lender, the
Borrower and XIT CORPORATION. The principal hereof and interest accruing
thereon shall be due and payable as provided in the Credit Agreement. This
Note may be prepaid only in accordance with the Credit Agreement.
This Note is issued pursuant, and is subject, to the Credit
Agreement, which provides, among other things, for acceleration hereof. This
Note is the Term Note referred to in the Credit Agreement. This Note is
secured, among other things, pursuant to the Credit Agreement and the
Security Documents as therein defined, and may now or hereafter be secured by
one or more other security agreements, mortgages, deeds of trust, assignments
or other instruments or agreements.
The Borrower hereby agrees to pay all costs of collection,
including attorneys' fees and legal expenses in the event this Note is not
paid when due, whether or not legal proceedings are commenced.
Presentment or other demand for payment, notice of dishonor
and protest are expressly waived.
CXR TELCOM CORPORATION,
a Delaware corporation
By: /s/ Xxxxxxxx Xxxxx
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Name: Xxxxxxxx Xxxxx
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Its CFO/VP
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