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 IV ("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 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.
AMENDMENT PROVISION.
THE TERM "NOTE" AND ALL REFERENCE THERETO, AS USED
THROUGHOUT THIS INSTRUMENT, SHALL MEAN THIS INSTRUMENT AS ORIGINALLY EXECUTED,
OR IF LATER AMENDED OR SUPPLEMENTED, THEN AS SO AMENDED OR SUPPLEMENTED, AND ANY
SUCCESSOR INSTRUMENT AS IT MAY BE AMENDED OR SUPPLEMENTED.
ASSIGNABILITY.
THIS NOTE SHALL BE BINDING UPON THE BORROWER AND ITS SUCCESSORS
AND ASSIGNS, AND SHALL INURE TO THE BENEFIT OF THE HOLDER AND ITS SUCCESSORS AND
ASSIGNS, AND MAY BE ASSIGNED BY THE HOLDER IN ACCORDANCE WITH THE REQUIREMENTS
OF THE SECURITY AGREEMENT.
COST OF COLLECTION.
IF DEFAULT IS MADE IN THE PAYMENT OF THIS NOTE, THE
BORROWER SHALL PAY THE