Satisfaction of Promissory Notes Sample Clauses

Satisfaction of Promissory Notes. As of August 27, 2015, the outstanding balances of Promissory Note #1 and Promissory Note #2 (including principal and interest through the date hereof) were $4,848,304.72 and $4,785,470.68, respectively. M▇. ▇▇▇▇▇▇ agrees to accept as full satisfaction of the Promissory Notes the sum of $7,036,000 (the “Debt Settlement Amount”), allocated equally between the Promissory Notes and payable as follows: (a) as of the Effective Date, the Company assigned the Licenses, as defined below and which for purposes of this Agreement shall have a value of $1,150,000; and (b) principal payments totaling $5,886,000, of which $195,000 was paid on the Effective Date of the Agreement and $5,691,000, bearing interest as provided in Section 1.3(c), below, until paid in full and payable as follows: (i) $2,500,000 upon funding of loan proceeds from FGI, which shall occur no later than October 21, 2015; (ii) subject to Company’s receipt of consent from FGI, in FGI’s sole discretion, if such consent is required, $1,000,000 payable on the 15th of each month beginning November 15, 2015 until the balance of the Debt Settlement Amount and interest, is paid in full. For clarity, this Agreement is not intended to, and shall not serve to, affect or terminate the Promissory Notes, or either of them, unless or until the Debt Settlement Amount is timely paid in full, provided however that all payments actually received on the Promissory Notes by M▇. ▇▇▇▇▇▇ will serve to reduce the obligations owing under the Promissory Notes, including but not limited to the amounts payable as of the date hereof as set forth in (a) and (b) of this Section 1.3. Further, in the event that the Company is able to procure any alternate funding prior to February 16, 2016, Company will use any such funding to repay the outstanding balance of the Debt Settlement Amount. (c) The Debt Settlement Amount shall bear 6% simple interest beginning on October 1, 2015, which such interest amount shall increase to 12% - or at the maximum rate allowed by applicable law, whichever is less - upon any breach of the Agreement, as amended, until such time until such breach is cured. For clarity, such interest amount shall escalate as provided in this Section 1.3(c) regardless of whether FGI consents to the payment. (d) M▇. ▇▇▇▇▇▇’▇ obligation to accept the Debt Settlement Amount in full satisfaction of the Promissory Notes is conditioned upon payment in full by February 16, 2016. If the Debt Settlement Amount is not paid in full by ...