(1) For
value received, the undersigned, Premier Financial Bancorp, Inc., a
Kentucky corporation with principal offices in Huntington, West
Virginia (“Borrower”) hereby promises to pay in lawful
money of the United States of America to the order of The
Bankers’ Bank of Kentucky, Inc., a Kentucky banking
organization, with main offices in Frankfort, Kentucky
(“Lender”), at the main offices of Lender, 107 Progress
Drive, Frankfort, Kentucky, 40602, equal payments of principal and
interest in the amount of One Hundred Thousand ($100,000) Dollars,
in eighty-three (83) consecutive monthly installments commencing
December 9, 2006, and on each monthly anniversary thereof, with the
entire remaining outstanding principal balance on November 9, 2013,
together with interest then due and owing.
(2) The outstanding principal balance under
this Term Note shall bear annual interest at the rate of the Prime
Rate, as announced from time to time by J.P. Morgan Chase Bank, New
York, New York, minus one (1%) percent, adjusted daily. The Prime
Rate of J.P. Morgan Chase Bank will function only as a tool for
setting the rate on this Term Note and Lender does not represent
that such rate has any relationship to the rate it charges its
other customers.
(3) All payments on account of indebtedness
evidenced by this Term Note shall be first applied to interest,
costs and expenses, and then to principal, and interest shall be
computed on the basis of a 360-day year.
(4) The occurrence of any one or more of the
following shall constitute a Default or Event of Default under this
Term Note as those terms are defined under the Loan Agreement
executed of even date herewith:
(i) Failure to make any payment of principal, interest or
costs within ten (10) days after any such payment is due hereunder;
and
(ii) The occurrence of any other Default or Event of Default
under the Loan Agreement, the Promissory Note, or the Stock Pledge
and Security Agreement executed of even date herewith by Lender and
Borrower.
(5) Time is of the essence with respect to
this Term Note and in the Event of Default or an Event of Default
under this Term Note, then (i) the entire principal balance
