Article II. The Loans.
Section 2.01 The Revolving Credit Note. Subject to the conditions and
the terms of the Loan Documents and in reliance upon the representations,
warranties, and covenants set forth in the Loan Documents, Lender agrees to
extend the Borrower credit on a revolving credit basis, in the principal amount
of up to $12,000,000 pursuant to the Revolving Credit Note.
Section 2.02 Advances Under the Revolving Credit Note. Advances under
the Revolving Credit Note shall be made only after the Borrower has complied
with the provisions of this Agreement. Borrower shall not be entitled to
receive Advances under the Revolving Credit Note subsequent to June 25, 1998.
Subject to the terms and requirements of this Agreement, Borrower may repay and
re-borrow amounts under the Revolving Note up to the maximum principal amount
thereof, provided, however, the amount available to be advanced to Borrower
under the Revolving Credit Note shall be reduced by the face amount of any
outstanding Letter of Credit issued by Lender or Borrower's behalf pursuant to
Section 2.11 herein.
Section 2.03 Borrowing Procedure. The Borrower hereby authorizes the
Lender to deposit all Advances under the Revolving Credit Note into the
operating account maintained by the Borrower with Lender. Any authorized officer
shall have the authority to request Advances. All requests for Advances shall be
in writing (except that telephonic requests by any authorized officer confirmed
immediately in writing thereafter shall be acceptable). In the event of a
telephonic request, the Lender shall be entitled to rely, without further
investigation, on the fact that the person making the telephone call has
identified himself as one of the authorized officers.
The giving of notice by Borrower that it is requesting an Advance
shall constitute a warranty that, as of the date the notice is given and as of
the date of the Advance, the officers of the Borrower do not have knowledge of
any Default Conditions or Event of Default as defined herein; and that as of
such date, the representations and warranties contained in Article IV are and
will be true and correct, except as to changes occurring after the date of this
Agreement caused by transactions not prohibited under this Agreement. Lender
shall have no liability to Borrower arising out of its compliance with this
Section 2.04 Minimum Advance Amounts. Advances under the Revolving
Credit Note shall not be made in amounts less than $100,000 without Lender's
prior written consent.