33 - Approving a loan from the City of Paris to the Paris Economic Development Corpation in the amount of $2.5 million

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PROMISSORY NOTE Borrower: PARIS ECONOMIC DEVELOPMENT CORPORATION A Texas Non -Stock, Non -Profit Industrial Development Corporation 1125 Bonham Street, Paris, Texas 75460 Lender: THE CITY OF PARIS A Municipal Corporation 150 SE Pt Street, Paris, TX 75460 Principal Amount: $2500-000.00 Initial Rate: 2.14% Date of Note: NEED TO FILL IN PROMISE TO PAY. PARIS ECONOMIC DEVELOPMENT CORPORATION, A Texas Non - Stock, Non -Profit Industrial Development Corporation (Borrower), by and through its duly authorized Chairman of the Board of Directors, JOSH BRAY, promises to pay to the order of THE CITY OF PARIS (Lender), in lawful money of the United States of America, the principal amount of TWO MILLION FIVE HUNDRED THOUSAND AND NO/100 ($2,500,000) Dollars. PAYMENT. Borrower shall repay this Promissory Note, both principal and interest, by or before the tenth (10th) anniversary of date of said note asset forth hereinabove. For the first three years of this Promissory Note, Borrower will make monthly payments in the amount of $16,249.39. During said three year period, interest will accrue at the rate of 2.14%. On the third anniversary of the Date of Note, and on the 61 and 91 anniversary dates thereof, interest will be recalculated using the formula set forth herein below. Amortization of this ten (10) year Note will be calculated on a fifteen (15) year basis with a balloon payment to be made at the end of year ten (10). Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. DETERMINATION OF INTEREST RATE. The initial interest rate of 2.14% on this note will adjust every thirty six (36) months, until maturity, using the multistep formula as follows: (1) determine the 10 year Constant Maturities Treasury Rate. (2) Subtract the rate determined above from the prime rate found in the Wall Street Journal. (3) Take 25% of the difference identified in #2 and add it to the rate of return determined in #1 above. (4) The result of the calculation in #3 will be the note interest rate. The rate of the note will never be less than two percent at any time during the term of the note. INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If