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EXHIBIT 10.11
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WELLS FARGO
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REVOLVING LINE OF CREDIT NOTE
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$17,500,000.00
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Lincoln, Nebraska
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August 1, 2006
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FOR VALUE RECEIVED, the undersigned
THE BUCKLE, INC. ("Borrower") promises to pay to the order of WELLS
FARGO BANK, NATIONAL ASSOCIATION ("Bank") at its office at Nebraska
RCBO - Lincoln, 1248 0 Street, 3rd Floor, Lincoln, NE 68508, or at
such other place as the holder hereof may designate, in lawful
money of the United States of America and in immediately available
funds, the principal sum of $17,500,000.00, or so much thereof as
may be advanced and be outstanding, with interest thereon, to be
computed on each advance from the date of its disbursement as set
forth herein.
1. INTEREST:
1.1 Interest. The
outstanding principal balance of this Note shall bear interest
(computed on the basis of a 360-day year, actual days elapsed) at a
rate per annum equal to the Prime Rate in effect from time to time.
The term "Prime Rate" means at any time the rate of interest most
recently announced within Bank at its principal office as its Prime
Rate, with the understanding that the Prime Rate is one of Bank's
base rates and serves as the basis upon which effective rates of
interest are calculated for those loans making reference thereto,
and is evidenced by the recording thereof after its announcement in
such internal publication or publications as Bank may designate.
Each change in the rate of interest hereunder shall become
effective on the date each Prime Rate change is announced within
Bank.
1.2 Payment of Interest. Interest accrued
on this Note shall be payable on the last day of each
month, commencing August 31, 2006.
1.3 Default Interest. From
and after the maturity date of this Note, or such earlier date as
all principal owing hereunder becomes due and payable by
acceleration or otherwise, the outstanding principal balance of
this Note shall bear interest until paid in full at an increased
rate per annum (computed on the basis of a 360-day year, actual
days elapsed) equal to 4% above the rate of interest from time to
time applicable to this Note.
2. BORROWING AND
REPAYMENT:
2.1 Borrowing and Repayment.
Borrower may from time to time during the term of this Note borrow,
partially or wholly repay its outstanding borrowings, and reborrow,
subject to all of the limitations, terms and conditions of this
Note and of the Credit Agreement between Borrower and Bank defined
below; provided however, that the total outstanding borrowings
under this Note shall not at any time exceed the principal amount
stated above. The unpaid principal balance of this obligation at
any time shall be the total amounts advanced hereunder by the
holder hereof less the amount of principal payments made hereon by
or for Borrower, which balance may be endorsed hereon from time to
time by the holder. The outstanding principal balance of this Note
shall be due and payable in full on July 31, 2009.
2.2 Advances . Advances
hereunder, to the total amount of the principal sum available
hereunder, may be made by the holder at the oral or written request
of (a) Dennis H. Nelson, Karen B Rhoads, anyone acting alone, who
are authorized to request advances and direct the disposition of
any advances until written notice of the revocation of such
authority is received by the holder at the office designated above,
or (b) any person, with respect to advances deposited to the credit
of any deposit account of Borrower, which advances, when so
deposited, shall be conclusively presumed to have been made to or
for the benefit of Borrower regardless of the fact that persons
other than those authorized to request advances may have authority
to draw against such account. The holder shall have no obligation
to determine whether any person requesting an advance is or has
been authorized by Borrower.
2.3 Application of Payments . Each payment
made on this Note shall be credited first, t
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