Common use of Credit Accommodations Clause in Contracts

Credit Accommodations. Subject to the terms and conditions hereinafter set forth, Bank agrees to extend to Borrower the following credit accommodation(s) ("Credit Accommodations(s)"), which shall be evidenced by promissory note(s) ("Note(s)"): 1. A Line of Credit, expiring on DEMAND, 19____, under which the Bank, in its discretion, will make advances to Borrower from time to time and Borrower may borrow, repay and reborrow from Bank subject to the following terms: a. Maximum outstanding principal amount of advances - $300,000.00. b. Interest on the outstanding principal balance at the following rate: i. Bank's base rate of interest plus 0%. ii. Interest payable (monthly/quarterly) commencing when billed, 19____. iii. Borrower shall reduce the amount of the outstanding principal under the Line of Credit to zero for one consecutive 30-day period during each year after the date hereof while the Line of Credit is in effect. c. BORROWER ACKNOWLEDGES THAT THE LINE OF CREDIT AND ANY ADVANCE THEREUNDER IS PROVIDED SOLELY AT BANK'S DISCRETION AND THE LINE OF CREDIT MAY BE TERMINATED AT ANY TIME AND FOR ANY REASON WHATSOEVER. 2. A Term Loan subject to the following terms: a. Principal amount - $ N/A. b. Interest on the outstanding principal balance at the following rate: i. Bank's base rate of interest plus N/A%. ii. Other rate terms - N/A c. Payment terms: i. Interest payable monthly commencing N/A, 19___. ii. Principal payable in N/A consecutive (monthly/quarterly) installments in the amount of $N/A each, or in the following amounts, commencing, N/A, 19___, with a final installment in the amount of the unpaid balance on N/A, 19___. ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- 3. Borrower shall pay the following fees to Bank for the Credit Accommodations: None 4. When interest hereunder is based on Bank's base rate, it shall be based upon the rate of interest publicly announced from time to time by Bank in Doylestown, Pennsylvania as its "Base Rate." The Bank's Base Rate is defined as the then-published Wall Street Journal Prime Rate of Interest in effect from time to time plus one percent. The applicable rate will change when and as Bank changes its base rate.

Credit Accommodations. Subject to the terms and conditions hereinafter set forth, Bank agrees to extend to Borrower the following credit accommodation(s) ("Credit Accommodations(s)"), which shall be evidenced by promissory note(s) ("Note(s)"): 1. A Line of Credit, expiring on DEMANDN/A, 19____, under which the Bank, in its discretion, will make advances to Borrower from time to time and Borrower may borrow, repay and reborrow from Bank subject to the following terms: a. Maximum outstanding principal amount of advances - $300,000.00.$ N/A. b. Interest on the outstanding principal balance at the following rate: i. Bank's base rate of interest plus 0N/A %. ii. Interest payable (monthly/quarterly) commencing when billedN/A, 19____. iii. Borrower shall reduce the amount of the outstanding principal under the Line of Credit to zero for one consecutive 30-day period during each year after the date hereof while the Line of Credit is in effect. c. BORROWER ACKNOWLEDGES THAT THE LINE OF CREDIT AND ANY ADVANCE THEREUNDER IS PROVIDED SOLELY AT BANK'S DISCRETION AND THE LINE OF CREDIT MAY BE TERMINATED AT ANY TIME AND FOR ANY REASON WHATSOEVER. 2. A Term Loan subject to the following terms: a. Principal amount - $ N/A.$1,300,000.00. b. Interest on the outstanding principal balance at the following rate: i. Bank's base rate of interest plus N/A%0%. ii. Other rate terms - N/A_____________________________________ c. Payment terms: i. Interest payable monthly commencing N/AAugust 1, 19___1998. ii. Principal payable in N/A 83 consecutive (monthly/quarterly) monthly installments in the amount of $N/A 7,222.22* each, or in the following amounts, commencing, N/ASeptember 1, 19___1998, with a final installment in the amount of the unpaid balance on N/AAugust 1, 19___2005. ------------------------------------------------------------------------------- -------------------------------------------------------------------------------* Principal payment based on 15 year amortization. 3. Borrower shall pay the following fees to Bank for the Credit Accommodations: None1% on new money - $7,000.00 4. When interest hereunder is based on Bank's base rate, it shall be based upon the rate of interest publicly announced from time to time by Bank in Doylestown, Pennsylvania as its "Base Rate." The Bank's Base Rate is defined as the then-published Wall Street Journal Prime Rate of Interest in effect from time to time plus one percent. The applicable rate will change when and as Bank changes its base rate. 5. Interest and any fees shall be calculated on the basis of a 360-day year and the actual number of days elapsed. 6. A late fee will be charged on the portion of any payment made more than twenty (20) days after it is due equal to five (5%) percent of the unpaid amount or twenty-five ($25.00) dollars, whichever is greater.