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EXHIBIT 10.36
EXHIBIT A-2
FORM OF TRANCHE B NOTE
$__________________ Philadelphia, Pennsylvania
_______________, 1997
FOR VALUE RECEIVED, WEST COAST ENTERTAINMENT CORPORATION, a Delaware
corporation (the "Company"), VIDEOSMITH INCORPORATED, a Massachusetts
corporation, WEST COAST FRANCHISING COMPANY, a Delaware corporation, PALMER WEST
COAST CORPORATION, a Delaware corporation, XXXXXX VIDEO CORPORATION, a Delaware
Corporation, XXXXXX INVESTMENT CORPORATION, a Delaware corporation, CASABLANCA
DISTRIBUTING CORPORATION, a Delaware corporation, RKT MERGER CO., a Delaware
corporation, SHOWTIME, INC., a Virginia corporation, VIDEO GIANT INC., a Texas
corporation, VIDEO KING OF XXXXXX COUNTY, INC., a New York corporation, KING
VIDEO ENTERPRISES, INC., a New York corporation, WEST COAST FINANCING
CORPORATION, a Delaware corporation and WEST COAST LICENSING CORPORATION, a
Delaware corporation (collectively, the "Borrowers"), hereby jointly and
severally unconditionally promise to pay to the order of
__________________________________ (the "Bank") at the office of PNC BANK,
NATIONAL ASSOCIATION (the "Agent") located at 0000 Xxxxxx Xxxxxx, Xxxxxxxxxxxx,
Xxxxxxxxxxxx, 00000, on the Termination Date (as such term is defined in the
Credit Agreement hereinafter referred to) in lawful money of the United States
of America and in immediately available funds, principal sum of (a)
__________________________DOLLARS ($______) or, if less, (b) the aggregate
unpaid principal amount of all Tranche B Loans made by the Bank to the Borrowers
pursuant to the Credit Agreement. The Borrowers further agree to pay interest
accrued on the unpaid principal amount outstanding hereunder from time to time
from the date hereof in like money at such office at the rates and on the dates
specified in the Credit Agreement together with all other costs, fees and
expenses as provided in the Credit Agreement.
The holder of this Note is authorized to endorse on Schedule 1 annexed
hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the respective date(s), the Type and
amount of each Tranche B Loan made by the Bank to the Borrowers, each
continuation thereof, each conversion of all or a portion thereof to another
Type, the date and amount of each payment or prepayment of principal thereof
and, in the case of Eurodollar Tranche B Loans, the length of each Interest
Period with respect thereto, which endorsement shall constitute prima facie
evidence of the accuracy of the information endorsed; provided, however, that
the failure to make any such endorsement (or any error in such recordation)
shall not affect the obligations of the
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Borrowers to make payments of principal, interest and other amounts outstanding
in accordance with the terms of this Note and the Credit Agreement.
This Note is one of the Tranche B Notes referred to in, evidences
indebtedness incurred under, and is entitled to the benefits of, the Credit
Agreement dated as of December __, 1997 (said Agreement, as it may hereafter be
amended, supplemented or otherwise modified from time to time, being referred to
as the "Credit Agreement") among the Borrowers, the other banks and financial
institutions parties thereto, and PNC Bank, National Association, as agent. The
Credit Agreement, among other things, contains provisions for the acceleration
of the maturity hereof upon the happening of certain events, for optional or
mandatory prepayments of the principal hereof prior to the maturity thereof, for
a higher rate of interest hereunder on amounts past due, for the amendment or
waiver of certain provisions of the Credit Agreement and for certain security
interests granted by the Borrowers. Reference is made to the Credit Agreement
and the other Loan Documents for a statement of the terms and conditions under
which the Loans evidenced hereby have been secured.
Upon the occurrence of any one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all as
provided therein.
All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and notice of any kind. No failure to exercise, and
no delay in exercising, any rights hereunder on the part of the holder hereof
shall operate as a waiver of such rights.
Capitalized terms not otherwise defined herein shall have the meanings
set forth in the Credit Agreement. This Note shall be governed by, and construed
in accordance with, the laws of the Commonwealth of Pennsylvania.
ATTEST: WEST COAST ENTERTAINMENT CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
[signatures continued on next page]
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ATTEST: VIDEOSMITH, INCORPORATED
___________________________ By:___________________________
Name:_____________________
Title:_____________________
[seal]
ATTEST: WEST COAST FRANCHISING COMPANY
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: PALMER WEST COAST CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: XXXXXX VIDEO CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: XXXXXX INVESTMENT CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
[signatures continued on next page]
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ATTEST: CASABLANCA DISTRIBUTING
CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: RKT MERGER CO.
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: SHOWTIME, INC.
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: VIDEO GIANT INC.
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: VIDEO KING OF XXXXXX COUNTY,
INC.
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
[signatures continued on next page]
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ATTEST: KING VIDEO ENTERPRISES,INC.
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: WEST COAST FINANCING
CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
ATTEST: WEST COAST LICENSING
CORPORATION
___________________________ By:___________________________
Name:______________________
Title:_____________________
[seal]
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SCHEDULE 1
TRANCHE B LOANS, CONVERSIONS AND PAYMENTS
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AMOUNT OF AMOUNT OF
BASE RATE EURODOLLAR
LOANS LOANS UNPAID
TYPE OF LOAN AMOUNT OF CONVERTED CONVERTED TO PRINCIPAL
(EURODOLLAR OR AMOUNT OF PRINCIPAL TO EURODOLLAR BASE RATE BALANCE OF NOTATION
DATE BASE RATE) LOANS REPAID LOANS LOANS LOANS MADE BY
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