Exhibit 10.3
RENEWAL TERM NOTE II
$3,470,000 September 17, 1998
For value received, the undersigned, GARGOYLES, INC. ("Borrower"), promises
to pay to the order of U. S. BANK NATIONAL ASSOCIATION ("U. S. Bank"), at its
principal place of business, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, or
such other place or places as the holder hereof may designate in writing, the
principal sum of Three Million Four Hundred Seventy Thousand Dollars
($3,470,000) in lawful immediately available money of the United States of
America, in accordance with the terms and conditions of that certain first
amended and restated credit agreement dated as of April 7, 1997, by and between
▇▇▇▇▇▇▇▇ and U. S. Bank (together with all supplements, exhibits, amendments,
and modifications thereto, the "Credit Agreement") and that certain ninth
amendment to first amended and restated credit agreement of even date herewith
(the "Ninth Amendment"). ▇▇▇▇▇▇▇▇ also promises to pay interest on the unpaid
principal balance hereof, in like money in accordance with the terms and
conditions and at the rate or rates provided for in the Credit Agreement. All
principal, interest, and other charges are due and payable in full on January 4,
1999.
Borrower and all endorsers, sureties, and guarantors hereof jointly and
severally waive presentment for payment, demand, notice of nonpayment, notice of
protest, and protest of this Note, and all other notices in connection with the
delivery, acceptance, performance, default, dishonor, or enforcement of the
payment of this Note except such notices as are specifically required by this
Note or by the Credit Agreement, and they agree that the liability of each of
them shall be unconditional without regard to the liability of any other party
and shall not be in any manner affected by any indulgence, extension of time,
renewal, waiver, or modification granted or consented to by U. S. Bank. Borrower
and all endorsers, sureties, and guarantors hereof (1) consent to any and all
extensions of time, renewals, waivers, or modifications that may be granted by
U. S. Bank with respect to the payment or other provisions of this Note and the
Credit Agreement; (2) consent to the release of any property now or hereafter
securing this Note with or without substitution; and (3) agree that additional
makers, endorsers, guarantors, or sureties may become parties hereto without
notice to them and without affecting their liability hereunder.
This Note is the Renewal Term Note II referred to in the Ninth Amendment
and as such is entitled to all of the benefits and obligations specified in the
Credit Agreement, including but not limited to any Collateral and any conditions
to making advances hereunder. Terms defined in the Credit Agreement are used
herein with the same meanings. Reference is made to the Credit Agreement for
provisions for the repayment of this Note and the acceleration of the maturity
hereof.
GARGOYLES, INC., a
Washington corporation
By /s/ ▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
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Title: CEO and CFO