ON DEMAND, AT A RATE PER ANNUM (THE "DEFAULT
RATE") EQUAL TO THE NOTE RATE PLUS FOUR PERCENT (4%).
(F)
USURY SAVINGS.
THIS AGREEMENT AND THE
NOTE ARE SUBJECT TO THE EXPRESS CONDITION THAT AT NO TIME SHALL BORROWER BE
OBLIGATED OR REQUIRED TO PAY INTEREST ON THE PRINCIPAL BALANCE OF THE LOAN AT A
RATE WHICH COULD SUBJECT LENDER TO EITHER CIVIL OR CRIMINAL LIABILITY AS A
RESULT OF BEING IN EXCESS OF THE MAXIMUM LEGAL RATE.
IF, BY THE TERMS OF THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS, BORROWER IS AT ANY TIME REQUIRED OR
OBLIGATED TO PAY INTEREST ON THE PRINCIPAL BALANCE DUE HEREUNDER AT A RATE IN
EXCESS OF THE MAXIMUM LEGAL RATE, THE LIBOR RATE, THE STATIC LIBOR RATE OR THE
DEFAULT RATE, AS THE CASE MAY BE, SHALL BE DEEMED TO BE IMMEDIATELY REDUCED TO
THE MAXIMUM LEGAL RATE AND ALL PREVIOUS PAYMENTS IN EXCESS OF THE MAXIMUM LEGAL
RATE SHALL BE DEEMED TO HAVE BEEN PAYMENTS IN REDUCTION OF PRINCIPAL AND NOT ON
ACCOUNT OF THE INTEREST DUE HEREUNDER.
ALL SUMS PAID OR AGREED TO BE PAID TO
LENDER FOR THE USE, FORBEARANCE, OR DETENTION OF THE SUMS DUE UNDER THE LOAN,
SHALL, TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED, PRORATED,
ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED TERM OF THE LOAN UNTIL PAYMENT
IN FULL SO THAT THE RATE OR AMOUNT OF INTEREST ON ACCOUNT OF THE LOAN DOES NOT
EXCEED THE MAXIMUM LEGAL RATE OF INTEREST FROM TIME TO TIME IN EFFECT AND
APPLICABLE TO THE LOAN FOR SO LONG AS THE LOAN IS OUTSTANDING.
Section 2.3.
LOAN PAYMENTS
(A)
PAYMENTS.
BORROWER AGREES TO PAY SUMS
UNDER THE NOTE IN INSTALLMENTS AS FOLLOWS:
(I)
A PAYMENT ON THE CLOSING DATE OF ALL
INTEREST THAT WILL ACCRUE ON THE PRINCIPAL AMOUNT OF THE NOTE DURING THE INTERIM
INTEREST PERIOD;
(II)
A PAYMENT ON EACH PAYMENT DATE OF INTEREST
EQUAL TO THE MONTHLY PAYMENT AMOUNT AND ANY OTHER INTEREST THAT HAS OR WILL
ACCRUE HEREUNDER DURING THE INTEREST PERIOD IN WHICH SUCH PAYMENT DATE OCCURS;
AND
(III)
THE OUTSTANDING PRINCIPAL AMOUNT AND ALL
INTEREST THEREON (INCLUDING INTEREST THROUGH THE END OF THE INTEREST PERIOD IN
WHICH THE MATURITY DATE OCCURS) SHALL BE DUE AND PAYABLE ON THE PAYMENT DATE
OCCURRING IN DECEMBER, 2006 (THE "MATURITY DATE"), UNLESS THE MATURITY DATE IS
EXTENDED PURSUANT TO SECTION 2.3(B) BELOW.
(B)
EXTENSION OF THE MATURITY DATE.
BORROWER
SHALL HAVE THE OPTION TO EXTEND THE TERM OF THE LOAN BEYOND THE INITIAL MATURITY
DATE FOR TWO (2) SUCCESSIVE TERMS (EACH, AN "EXTENSION OPTION") OF ONE (1) YEAR
EACH TO (X) THE PAYMENT DATE OCCURRING IN DECEMBER, 2007 AND (Y) THE PAYMENT
DATE OCCURRING IN DECEMBER, 2008 (EACH SUCH DATE, THE "EXTENDED
21
MATURITY DATE"), RESPECTIVELY, AND, AS TO EACH EXTENSION OPTION, UPON
SATISFACTION OF THE FOLLOWING TERMS AND CONDITIONS:
(I)
NO EVENT OF DEFAULT SHALL HAVE OCCURRED
AND BE CONTINUING AT THE TIME THE APPLICABLE EXTENSION OPTION IS EXERCISED AND
ON THE DATE THAT