Note, and the Borrower's failure to deliver a replacement Note is
not cured within seven (7) business days.
3.7
Payment Grace Period.
The Borrower shall have a three (3)
business day grace period to pay any monetary amounts due under this Note or the
Security Agreement or any Related Document, after which grace period a default
interest rate of five percent (5%) per annum above the then applicable interest
rate hereunder shall apply to the monetary amounts due.
DEFAULT PAYMENTS
DEFAULT PAYMENT.
IF AN EVENT OF DEFAULT OCCURS, THE HOLDER, AT ITS OPTION, MAY
ELECT, IN ADDITION TO ALL RIGHTS AND REMEDIES OF HOLDER UNDER THE SECURITY
AGREEMENT AND ALL OBLIGATIONS OF BORROWER UNDER THE SECURITY AGREEMENT, TO
REQUIRE THE BORROWER TO MAKE A DEFAULT PAYMENT ("DEFAULT PAYMENT").
THE DEFAULT
PAYMENT SHALL BE THE OUTSTANDING PRINCIPAL AMOUNT OF THE NOTE, PLUS ACCRUED BUT
UNPAID INTEREST, ALL OTHER FEES THEN REMAINING UNPAID, AND ALL OTHER AMOUNTS
PAYABLE HEREUNDER.
DEFAULT PAYMENT DATE AND DEFAULT NOTICE PERIOD.
THE DEFAULT PAYMENT SHALL BE
DUE AND PAYABLE ON THE FIFTH BUSINESS DAY AFTER AN EVENT OF DEFAULT AS DEFINED
IN ARTICLE III ("DEFAULT PAYMENT DATE") HAS OCCURRED AND IS CONTINUING BEYOND
ANY APPLICABLE GRACE PERIOD.
THE PERIOD BETWEEN DATE UPON WHICH OF AN EVENT OF
DEFAULT HAS OCCURRED AND IS CONTINUING BEYOND ANY APPLICABLE GRACE PERIOD AND
THE DEFAULT PAYMENT DATE SHALL BE THE "DEFAULT PERIOD." IF DURING THE DEFAULT
PERIOD, THE BORROWER CURES THE EVENT OF DEFAULT, THE EVENT OF DEFAULT WILL NO
LONGER EXIST AND ANY ADDITIONAL RIGHTS THE HOLDER HAD TRIGGERED BY THE
OCCURRENCE AND CONTINUANCE OF AN EVENT OF DEFAULT WILL NO LONGER EXIST.
IF THE
EVENT OF DEFAULT IS NOT
10CC-6
CURED DURING THE DEFAULT NOTICE PERIOD, ALL AMOUNTS PAYABLE HEREUNDER SHALL BE
DUE AND PAYABLE ON THE DEFAULT PAYMENT DATE, ALL WITHOUT FURTHER DEMAND,
PRESENTMENT OR NOTICE, OR GRACE PERIOD, ALL OF WHICH HEREBY ARE EXPRESSLY
WAIVED.
DEFAULT INTEREST RATE.
FOLLOWING THE OCCURRENCE AND DURING THE CONTINUANCE OF
AN EVENT OF DEFAULT, INTEREST ON THIS NOTE SHALL AUTOMATICALLY BE INCREASED BY
FIVE PERCENT (5%) PER ANNUM, AND ALL OUTSTANDING OBLIGATIONS, INCLUDING UNPAID
INTEREST, SHALL CONTINUE TO ACCRUE INTEREST FROM THE DATE OF SUCH EVENT OF
DEFAULT AT SUCH INTEREST RATE APPLICABLE TO SUCH OBLIGATIONS UNTIL SUCH EVENT OF
DEFAULT IS CURED OR WAIVED.
CUMULATIVE REMEDIES.
THE REMEDIES UNDER THIS NOTE SHALL BE CUMULATIVE.
MISCELLANEOUS
FAILURE OR INDULGENCE NOT WAIVER.
NO FAILURE OR DELAY ON THE PART OF THE HOLDER
HEREOF IN THE EXERCISE OF ANY POWER, RIGHT OR PRIVILEGE HEREUNDER SHALL OPERATE
AS A WAIVER THEREOF, NOR SHALL ANY SINGLE OR PARTIAL EXERCISE OF ANY SUCH POWER,
RIGHT OR PRIVILEGE PRECLUDE OTHER OR FURTHER EXERCISE THEREOF OR OF ANY OTHER
RIGHT, POWER OR PRIVILEGE.
ALL RIGHTS AND REMEDIES EXISTING HEREUNDER ARE
CUMULATIVE TO, AND NOT EXCLUSIVE OF, ANY RIGHTS OR REMEDIES OTHERWISE AVAILABLE.
NOTICES.
ANY NOTICE HEREIN REQUIRED OR PERMITTED TO BE GIVEN SHALL BE IN
WRITING AND PROVIDED IN ACCORDANCE WITH THE TERMS OF THE SECURITY AGREEMENT.