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DEFINITIONS: As used on page t, "fN " means the terms that apply to
<br />this loan. "I," "me" or "my" means each Borrower who signs this note
<br />and each other person or legal entity (including guarantors, endorsers,
<br />and sureties) who agrees to pay this note (together referred to as "us").
<br />"You" or "your" means the Lender and its successors and assigns.
<br />APPUCABLE LAW: The law of the state of Texas wil4.;govem this,,note.
<br />Any term of this note which is contrary to applicab3e~ l~w wtk"hCt be
<br />effective, uniess the law permits you and me to agree<to such a~i:✓aristjon.
<br />If any provision of this agreement cannot be enforaed according tG; fts
<br />terms, this fact wili not affect the enforceability of t},ie retnaindCr ot:;ihis
<br />agreement. No modification of this agreement may be,;mp& wiA.out;:Your
<br />express written consent Time is of the essence in this~agl`eemenYF,~::ii%'
<br />COMMISSIONS OR OTHER REMUNERATION: I understand and agree that
<br />any insurance premiums paid to insurance companies as part of this note
<br />will involve money retained by you or paid back to you as commissions or
<br />other remuneration.
<br />In addition, I understand and agree that some other payments to third
<br />parties as part of this note may also involve money retained by you or
<br />paid back to you as commissions or other remuneration.
<br />PAYMENTS: Each payment I make on this note wili first reduce the
<br />amount I owe you for charges which are nerther interest nor principal.
<br />The remainder of each payment will then reduce acerued unpaid interest,
<br />and then unpaid principal. If you and I agree to a different appiication of
<br />payments, we will describe our agreement on this note. I may prepay a
<br />part of, or the entire balance of this loan without penaliy, unless we
<br />specify to the contrary on this note. Any partial prepayment will no[
<br />excuse or reduce any later scheduled paymem until this note fs paid in full
<br />lunless, when I make the prepayment, You and I agree in writing to the
<br />contraryl.
<br />INTEREST: Interest accrues on the pnncipal remaining unpaid from time
<br />to time, until paid in full. If I receive the principal in more than one
<br />advance, each advance will start to earn interest only when I receive the
<br />advance. The interest rate in effect on this note at any given time will
<br />apply to the entire principal advanced at that time. Notwithstanding
<br />anything to the contrary, I do not agree to pay and you do not intend to
<br />charge any rate of interest that is higher than the maximum rate of
<br />interest you could charge under applicable law tor the extension of credit
<br />that is agreed to here (erther before or after maturity). If any notice of
<br />inteiesi accrual is sent and is in erroL we mutually agree to correct it,
<br />and if you actually collect more interest than allowed 6y law and this
<br />agreement, you agree to refund it to me.
<br />INDEX RATE: The index will serve only as a device for setting the rate on
<br />this note. You do not guarantee by selecting this index, or the margin,
<br />that the rate on this note will be the same rate you charge on any other
<br />loans or class of loans to me or other borrowers.
<br />ACCRUAL METHOD: The amount of interest that I will pay on this loan
<br />will be calculated using the interest rate and accrual method stated on
<br />page 1 of this note. For the purpose of interest calculation, the accrual
<br />method will determine the number of days in a"year." It no accrual
<br />method is stated, then you may use any reasonable accrual method for
<br />calculating interest.
<br />POST MATURITY RATE: For purposes of deciding when the "Post
<br />Maturity Rate" Ishown on page 11 applies, the term "maturity" means the
<br />date of the last scheduled payment indicated on page 1 of this note or
<br />the date you accelerate payment on the note, whichever is earlier.
<br />SINGLE ADVANCE LOANS: If [his is a single advance loan, you and I
<br />expect that you will make only one advance of principal. However, you
<br />may add: other amounts to the principal if you make any payments
<br />described in the "PAYMENTS BY LENDER" paragraph below.
<br />MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I
<br />expect that you wfll make more than one advance of principal. If this is
<br />closed end credit, repaying a part of the principal will not entitle me to
<br />additional credit. PAYMENTS BY LENDER: It you are authorized to pay, on my behalf,
<br />charges I am obligated to pay (such as property insurance premiums),
<br />then you may treat those payments made by you as advances and add
<br />them to the unpaid. principal under this note, or you may demand
<br />immediate payment of the charges.
<br />SET-OFF: I agree that you may set off any amount due and payable under
<br />this note agamst any right I have to receive money from you.
<br />"Right to receive money from you" means:
<br />(1) any deposit account balance I have with you;
<br />(2) any money owed to me on an item presented to you or in you
<br />possession for collection or exchange; and
<br />131 any repurchase agreement or other nondeposit obligation.
<br />"Any amount due and payable under this note" means the total
<br />amount of which you are entitled to demand payment under the terms o
<br />this note at the time you set oft. This total includes any balance the du
<br />date for which you properly accelerate under this note.
<br />If my right to receive money from you is also owned 6y someone wh
<br />has not agreed to pay this note, your right of set-off will apply to m
<br />interest in the obligation and to any other amounts I could withdraw o
<br />my sole request or endorsement. Your right of set-off does not apply t
<br />an account of other obligation where my rights are only as a
<br />representative. It also does not apply to any Individual Retirement
<br />Account or other tax-deferred retirement account.
<br />You will not be liable for the dishonor of any checl< when the dishonor
<br />occurs because you set off this debt against any of my accounts. lagree
<br />to hold you harmless from any such claims arising as a resuh of your
<br />exercise of your right of set-off.
<br />REAL ESTATE OR RESIDENCE SECURITY: Ii this note is secured by real
<br />....estateor a;;{,esidence that is personal property, the existence of a defaWt
<br />~end yoUr xC'medies for such a default will be deterrnined by applicable
<br />ii> laV✓, by~ th~e terms of any separate instrument creating the security
<br />nd, to the extem not prohibited by law and not contrary to the
<br />::>"'terms o{; the separate security instrument; by the "DefaWY" and
<br />"RemediiRS" paragraphs herein. DEFAULT: I will be in detault on this loan and any agreement securing
<br />this loan if any one or more of the following occurs:
<br />(1) I fail to perform any obligation which I have undertaken in this
<br />note or any agreement securing this note;
<br />(2) you, in good faith, believe that the prospect of payment or the
<br />prospect of my performance of any other of my obligations under
<br />this note or any agreement securing this note is impaired; or
<br />(3) I fail to pay, or keep any promise, on any debt or agreement I have
<br />with you unless otherwise prohibited by law.
<br />If any of us are in default on ihis note or any security agreement, you
<br />may exercise your remedies against any or all of us
<br />REMEDIES: If I am in default on this note you have, 6ut are not limited to,
<br />the following remedies:
<br />(1) You may demand immediate payment of my debt under this note
<br />(principai, accrued unpaid interest and other accrued charges).
<br />(2) You may set off this debt against any right I have to the paymeni
<br />of money from you, subject to the terms of the "Set-Off"
<br />paragraph herein.
<br />13) You may demand security, additional security, or additional parties
<br />to be obligated to pay thfs note as a condition for not using any
<br />other remedy.
<br />(4) You may refuse to make advances to me or allow purchases on
<br />credit by me. -
<br />(5) You may use any remedy you have under state or federal law.
<br />By selecting any one or more of these remedies you do not give up
<br />your rigM to later use any other remedy. By waiving your right to declare
<br />an event to be a default, you do not waive your right to later consider the
<br />event as a default if it continues or happens again.
<br />COLLECTION COSTS AND ATTORNEY'S FEES: I agree to pay all costs of
<br />collection, replevin or any other or simiiar type of cost if I am in default.
<br />In addition, ff you hire an attomey to collect this note, I also agree to pay
<br />any fee you incur with such attomey plus court costs (except where
<br />prohibited by law). To the extent permitted by the United States
<br />8ankruptcy Code, I also agree to pay the reasonable attorney's fees and
<br />costs you incur to collect this debt as awarded by any court exercising
<br />jurisdiction under the Bankruptcy Code.
<br />WAIVER: I give up my rights to require you to do certain things. i will not
<br />require you to:
<br />(1) demand payment of amounts due (presentment);
<br />(2) obtain official certification of nonpayment (protest);
<br />(3) give notice that amounts due have not been paid (notice of
<br />dishonor); -
<br />(4) give notfce of intent to accelerate; or
<br />(5) give notice of acceleration.
<br />I waive any defenses I have based on suretyship or impairmem oi
<br />collateraL OBLIGATIONS INDEPENDENT: I understand that I must pay this note
<br />even if someone else has also agreed to pay it (by, for exampie, signing
<br />this form or a separate guarantee or endorsement). You may sue me
<br />alone, or anyone else who is obligated on this note, or any number o1 us
<br />together, to collect this note. You may do so without any notice that it
<br />has not been paid (notice of dishonor). You may without notice release
<br />any party to this agreement without releasing any other party. If you give
<br />up any of your rights, with or without notice, it will not affect my duty to
<br />pay this note. Any extension of new credit to any of us, or renewal of
<br />this note by all or less than all of us will not release me from my duty to
<br />pay it IOf course, you are entitled to only one payment in full.) I agree
<br />that you may at your option extend this note or the debt represented by
<br />this note, or any portion of the note or debt, from time to time withoui
<br />limit or notice and for any term without atfeciing my liability tor payment
<br />of the note. I will not assign my obligation under this agreemenr withoui
<br />r your prior written approval.
<br />FINANCIAL INFORMATION: I agree to provide you, upon request, any
<br />financial statement or information you may deem necessary. 1 warrant
<br />that the financial statements and information I provide to you are or will
<br />f be accurate, correct and comptete.
<br />e NOTICE: Unless otherwise required 6y law, any notice to me shall be
<br />given by delivering it or by' mailing it by first class mail addressed to me
<br />o at my last known address. My current address is on page 1. I agree to
<br />y inform you in writing of any change in my address. I will give any notice
<br />n to you by mailing it first class to your address stated on page i of this
<br />o agreement, or to any other address that you have designated.
<br />DATE Of
<br />TRANSAC110N
<br />PRINCIPAL
<br />ADVANCE
<br />BORROWER'S
<br />INITIALS
<br />Inot required~
<br />PRINCIPAL
<br />PAYMENTS
<br />PPINCIPAL
<br />BALANCE
<br />INTEREST
<br />RATE
<br />INTEREST
<br />PAVMENTS
<br />INTERE51
<br />PAID
<br />THROUGH.
<br />$
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<br />%
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<br />°/a
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<br />S
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<br />%
<br />5
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<br />5
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<br />%
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<br />(page 2 of 2)
<br />?1 19Ba. 1991 Bankers Sysiems. Inc., St CIouA, MN Form UN-TX 317/2002
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