Professional Documents
Culture Documents
Borrower
Noteholder
Term Sheet Definitions
Use of Proceeds
Principal Amount of Note
Interest Rate
Scheduled Payments
Voluntary Prepayments
Mandatory Prepayment Upon
Change in Control
Maturity Date
Collateral
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Subordination/Priority
In a liquidation, winding up or bankruptcy of Borrower the Seller Note
shall be paid in full before any payment is made with respect to any
other notes and all other indebtedness for money borrowed.
Seller Approval Rights
Restrictions
Events of Default
The Seller Note will be considered Current if all payments due have
been paid.
Payments will be credited on a First Due, First Paid basis.
The Seller Note will be considered in Default if Borrower is late on
an accumulation of 3 payments at any one time.
Failure to pay three (3) consecutive monthly payments over sixty-one
(61) days (such 61 days the Cure Period).
While the Seller Note is not Current, Borrower may not make
any principal or interest payments on any other Note; however
interest will accrue on the other Notes.
Advisory Board
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The Note holder will forbear from exercise of rights and remedies,
including under the Pledge Agreement, for Forbearance Period (which
commences upon entry into Default), if:
Forbearance Period means (i) six (6) months, or (ii) such longer
period approved by Seller.
During Forbearance Period:
No Seller, Acquisition, or Working Capital Note interest or
principal payments will be made
Interest will accrue
Michael Bishops salary will accrue, but not be paid, and will
be reduced to the minimum required under California law
(approximately $37,440 annually)
Assignment
Governing Law
Expenses
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Seller may not assign or encumber the Seller Note without Borrowers
prior written consent; provided, however, that Seller may assign all or
any portion of the Seller Note to family members and/or trusts
established for estate planning purposes.
California.
Each party is responsible for its own legal and other expenses in
connection with the Note issuance.
ATTACHMENT A
AGGREGATE AMOUNT
OF VOLUNTARY
PRINCIPAL
PREPAYMENTS
INTEREST RATE
$25,000-$49,999
15.93%
$50,000-$74,999
14.83%
$75,000-$99,999
14.11%
$100,000-$124,999
13.43%
$125,000-$149,999
13.08%
$150,000-$174,999
12.71%
$175,000-$199,999
11.82%
$200,000-$224,999
10.88%
$225,000-$249,999
10.25%
$250,000-$274,999
9.53%
$275,000-$299,999
8.69%
$300,000-$349,999
7.89%
$350,000-$374,999
6.98%
$375,000-$399,999
6.11%
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