EXHIBIT 10.37
NOTE
Lexington, North Carolina
April 30, 2000
$110,000
FOR VALUE RECEIVED, the undersigned promises to pay to the order of Ernst
B. Kemm, on the thirteenth month from all current dates, the balance of the
principal outstanding of up to the sum of One Hundred and Ten Thousand Dollars,
($110,000). with interest from date at the the rate of 1 1/2% above prime (prime
as used in this note shall be the prime as established by Lexington State Bank).
Interest shall be payable monthly beginning June 1, 2000.
This note shall be secured by a pledge of the inventory and machinery and
equipment of Wellington Hall, Limited (subject to a prior pledge of the
machinery and equipment to the Lexington State Bank and subject to and
subordinate to any loans made by Wellington Hall, Limited, with liens on the
inventory, equipment, and machinery pledged by the undersigned to any outside
lender.)
Upon default in the performance of any provision of this note, the holder
may elect to declare that all of the unpaid principal and all accrued interest
thereon to become due and collectible on the last day of the thirteen month from
the date of notice.
The makers, sureties, endorsers, or guarantors of this note and all others
that may become liable for all or any part thereof, jointly and severally:
(1) Waive presentment for payment, demand, protest, notice or protest and
notice of dishonor:
(2) Agree that their respective liabilities shall not be diminished or
affected by any extension of time for payment of all or any part of the
principal or interest hereof or for the performance of any obligation under this
note, or by any change by way of release, surrender or substitution of any
collateral securing this note.
(3) Waive any notice of consent with reference to any of the foregoing.
Signed and sealed at Lexington, North Carolina, this 30th day of April
2000.
WELLINGTON HALL, LIMITED
ATTEST:
BY_______________________
President
_________________________
Secretary
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