EXHIBIT 10.6
LINE OF CREDIT NOTE
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$250,000 FEBRUARY 27, 1997
METAIRIE, LOUISIANA
FOR VALUE RECEIVED, XXXXX X. XXXXXXX, an individual residing in the State
of Florida (the "Borrower"), hereby promises to pay to the order of XXXXXXX
ENTERPRISES, INC., a Louisiana corporation (the "Lender"), the principal sum of
Two Hundred Fifty Thousand and No/100 ($250,000.00) Dollars or such lesser
amount as may constitute the unpaid principal amount advanced by Lender under
the terms and conditions of this line of credit note (the "Line of Credit
Note").
RECITALS
At the request of Xxxxxxxx, Xxxxxx agrees to loan Borrower a principal
amount not to exceed $250,000.00 in accordance with the terms and conditions of
this Line of Credit Note. In order to secure the indebtedness evidenced by this
Line of Credit Note, Xxxxxxxx agrees to pledge certain shares of the Class A
Common Stock of Xxxxxxx Enterprises, Inc. pursuant to the conditions and
stipulations of the Act of Pledge by Xxxxxxxx and Lender of even date herewith.
TERMS AND CONDITIONS
If not sooner paid, the entire indebtedness evidenced by this Line of
Credit Note shall be due and payable upon the closing of a sale of Borrower's
former residence in Hickory, North Carolina.
Xxxxxx agrees to loan Borrower an amount not to exceed the principal amount
of $250,000.00, in advances of such amounts and at such intervals as Borrower
may require. On January 17, 1997, Xxxxxxxx has requested and received from
Lender one advance in the amount of $50,000.00, which advance constitutes a
portion of the principal amount stated herein.
At the time any advance is made hereunder, Xxxxxx shall cause a notation to
be made on Schedule A which shall include the amount and the date of such
advance. Such notation shall be binding on Lender and Borrower for any and all
purposes.
Borrower unconditionally promises to pay interest on each advance
comprising the unpaid principal amount of this Line of Credit Note from the date
of such advance until the maturity of this Line of Credit at a rate equal to the
six (6) month LIBOR Rate Option as
defined in the Fifth Amended and Restated Loan Agreement by and among Xxxxxxx
Enterprises, Inc. and NationsBank of Texas, N.A., Citicorp USA, Inc., Hibernia
National Bank, First Union National Bank of North Carolina, SunTrust Bank,
Atlanta, formerly known as Trust Company Bank and Cooperatieve Centrale
Raiffeisen-Boerenleenbank, B.A., "Rabobank Nederland," New York Branch, Bank of
America National Trust and Savings Association, and First Interstate Bank of
Texas, N.A., as amended or restated from time to time, or under any replacement
thereof, in effect as of the date of such advance and upon the six month
anniversary of such advance (the "LIBOR Rate Option").
Any amounts due under this Line of Credit Note shall be payable in lawful
money of the United States of America at the offices of Lender, 000 Xxxxxxxx
Xxxxxxxxx, Xxxxxxxx, Xxxxxxxxx 00000, Attention: Xxxxxxx X. Xxxx, President, or
at such place as the legal holder hereof may designate in writing.
This Line of Credit Note may be prepaid in full or in part at any time
without penalty or premium. If prepaid in part, each such installment shall be
applied first to the payment of interest accrued and unpaid on the outstanding
principal balance, with the remainder applied to the outstanding principal.
In the event of a default in payment of any installment of interest hereof
as the same becomes due and such default is not cured within ten (10) days from
the due date, then in such event the legal holder hereof may, without further
notice, declare the remainder of the principal sum, together with all interest
accrued thereon, due and payable. Failure to exercise this option shall not
constitute a waiver of the right to exercise the same at any other time. All
past due payments of principal and interest under this Line of Credit Note shall
bear interest at the lesser of LIBOR Rate Option plus three (3%) percent, or the
maximum rate of interest permitted by law.
All parties to this Line of Credit Note, including Borrower and Lender,
hereby waive protest, presentment, notice of dishonor, and notice of
acceleration of maturity and agree to continue to remain bound for the payment
of principal, interest and all other sums due under this Line of Credit Note
notwithstanding any change or changes by way of release, exchange, modification
or substitution of any security for this Line of Credit Note or by way of any
extension or extensions of time for the payment of principal and interest; and
all parties waive all and every kind of notice of such change or changes and
agree that the same may be made without notice or consent of any of them.
Upon default, the legal holder hereof may employ an attorney to enforce its
rights and remedies and Xxxxxxxx hereby agrees to pay such holder reasonable
attorney's fees not exceeding a sum equal to fifteen (15%) percent of the
outstanding balance owing on said Line of Credit Note, plus all other reasonable
expenses incurred by the holder in exercising any of the holder's rights and
remedies upon default. The legal holder's failure to exercise any right
or remedy under the Line of Credit Note shall not be a waiver or release of such
rights or remedies or the right to exercise them at any time.
This Line of Credit Note is to be governed and construed in accordance with
the laws of the State of Louisiana.
IN WITNESS WHEREOF, Xxxxxxxx and Lender have caused this Line of Credit
Note to be executed of the date and year first above written.
BORROWER:
/S/ XXXXX X. XXXXXXX
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XXXXX X. XXXXXXX
LENDER:
XXXXXXX ENTERPRISES, INC.
BY: /S/ XXXXXXX X. XXXX
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