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MILLION DOLLAR SALOON, INC CITIZENS NATIONAL BANK IN WAXAHACHIE
6848 GREENVILLE 200 N ELM P 0 BOX 717 Loan Number 103723
XXXXXX, XX 00000 XXXXXXXXXX, XX 00000 Date01-29-2004
Maturity Date 01-29-2019
Loan Amount $2,000,000.00
Renewal Of_____________
BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS
"I" includes each borrower "You" means the lender, its successors
above, jointly and severally. and assigns.
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For value received, I promise to pay to you, or your order, at your address
listed above the PRINCIPAL sum of TWO MILLION AND NO/100 Dollars $2.000.000.00
[X] Single Advance: I will receive all of this principal sum on 01-29-2004 . No
additional advances are contemplated under this note.
[_] Multiple Advance: The principal sum shown above is the maximum amount of
principal I can borrow under this note. On
_________________________________ I will receive the amount of
$______________________ and future principal advances are contemplated.
Conditions: The conditions for future advances are_________________________
___________________________________________________________________________
___________________________________________________________________________
[_] Open End Credit: You and I agree that I may borrow up to the maximum
amount of principal more than one time. This feature is subject to all
other conditions and expires on____________________________.
[_] Closed End Credit: You and I agree that I may borrow up to the maximum
only one time (and subject to all other conditions).
INTEREST: I agree to pay interest on the outstanding principal balance from
01-29-2004 at the rate of 6.500 % per year until 01-29-2005.
[X] Variable Rate: This rate may then change as stated below.
[X] Index Rate: The future rate will be 1.000 PERCENT ABOVE the following
index rate: THE HIGHEST RATE ON CORPORATE LOANS POSTED BY AT LEAST 75% OF
THE USA'S THIRTY LARGEST BANKS KNOWN AS THE WALL STREET JOURNAL PRIME RATE.
THE RESULT OF THIS CALCULATION WILL BE ROUNDED TO THE NEAREST 0.125
[X] Ceiling Rate: The interest rate ceiling for this note is the __________
ceiling rate announced by the Credit Commissioner from time to time.
[X] Frequency and Timing: The rate on this note may change as often as
EVERY 12TH MONTH BEGINNING 01-29-2005
A change in the interest rate will take effect ON THE SAME DAY
[X] Limitations: During the term of this loan, the applicable annual
interest rate will not be more than 12.500 % or less than 6.500 %. The rate
may not change more than 2.000% each 12TH MONTH
Effect of Variable Rate: A change in the interest rate will have the
following effect on the payments:
[X] The amount of each scheduled [_] The amount of the final
payment will change. payment will change,
[_] _______________________________________________________________________
ACCRUAL METHOD: Interest will be calculated on a ACTUAL/365 basis.
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note
owing after maturity, and until paid in full, as stated below:
[_] on the same fixed or variable rate basis in effect before maturity (as
indicated above).
[X] at a rate equal to HIGHEST RATE ALLOWED BY LAW
[X] LATE CHARGE: If a payment is made more than 10 days after it is due, I agree
to pay a late charge of 5.000% OF THE PAYMENT AMOUNT WITH A MAX OF $1000.00
[_] ADDITIONAL CHARGES: In addition to interest, I agree to pay the following
charges which [_] are [_] are not included in the principal amount above:
___________________________________________________________________________
PAYMENTS: I agree to pay this note as follows:
180 MONTHLY PAYMENTS OF $17,425.94 BEGINNING 02-29-2004. THIS IS A VARIABLE RATE
LOAN AND THE PAYMENT AMOUNTS MAY CHANGE AFTER THE 12TH PAYMENT AND EVERY 12TH
PAYMENT THEREAFTER.
ADDITIONAL TERMS:
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[X] SECURITY: This note is
separately secured by (describe
separate document by type and
date):
DEED OF TRUST DATED JANUARY 29,
2004
(This section is for your
internal use. Failure to list a
separate security document does
not mean the agreement will not
secure this note.)
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PURPOSE: The purpose of this
loan is REFINANCE LAND PURCHASE
LOAN.
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THIS WRITTEN LOAN AGREEMENT REPRESENTS THE SIGNATURES: I AGREE TO THE TERMS
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY OF THIS NOTE (INCLUDING THOSE ON
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, PAGE 2). I HAVE RECEIVED A COPY
CONTEMPORANEOUS, OR SUBSEQUENT ORAL ON TODAY'S DATE.
AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN PARTIES. MILLION DOLLAR SALOON, INC.
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DEFINITIONS: As used on page 1, "[X] You will not be liable for the
" means the terms that apply to his dishonor any check when the dishonor
loan. ."I,". ; me" or "my" means occurs because you set off this debt
each Borrower who signs this note against any of my accounts. I agree
and each other person or legal to hold you harmless from any such
entity (including guarantors, claims arising as a result of your
endorsers, and sureties) who agrees exercise of your right of set-off.
to pay this note (together referred REAL ESTATE OR RESIDENCE SECURITY:
to as "us"). You" or "your" means If this note is secured by real
the Lender and its successors and estate or a residence that is
assigns. personal property, the existence of
APPLICABLE LAW: The law of the state a default and your remedies for such
of Texas will govern this note. Any a default will be determined by
term of this note which is contrary applicable law, by the terms of any
to applicable law will not be separate instrument creating the
effective, unless the law permits security interest and, to the extent
you and me to agree to such a not prohibited by law and not
variation. If any provision of this contrary to the terms of the
agreement cannot be enforced separate security instrument, by the
according to its Terms, this fact "Default" and "Remedies" paragraphs
will not affect the enforceability herein.
of the remainder of this agreement. DEFAULT: I will be in default on
No modification of this agreement this loan and any agreement securing
may be made without your express this loan if any one or more of the
written consent. Time is of the following occurs:
essence in this agreement. (1) I fail to perform any obligation
COMMISSIONS OR OTHER REMUNERATION: I which I have undertaken in this note
understand and agree that my or any agreement securing this note;
insurance premiums paid to insurance *see addendum*
companies as part of this note will (2) you, in good faith, believe that
involve money retained by you or the prospect of payment or the
paid back to you as commissions or prospect of my performance of any
other remuneration. other of my obligations under this
In addition; I understand and agree note or any agreement securing this
that some other payments to third note is impaired; or
parties as part of this note may (3) I fail to pay, or keep any
also involve money retained by you promise, on any debt or agreement I
or paid back to you as commissions have with you unless otherwise
or other remuneration. prohibited by law.
PAYMENTS: Each payment I make on If any of us are in default on this
this note will first reduce the note or any security agreement, you
amount I owe you for charges which may exercise your remedies against
are neither interest nor principal, any or all of us.
The remainder of each payment will REMEDIES: If I am in default on this
then reduce accrued unpaid interest, note you have, but are not limited
and then unpaid principal. If you to, the following remedies:
and I agree to a different (1) You may demand immediate payment
application of payments, we will of my debt under this note
describe our agreement on this note. (principal, accrued unpaid interest
I may prepay a part of, or the and other accrued charges).
entire balance of this loan without (2) You may set off this debt
penalty, unless we specify to the against any right I have to the
contrary on this note. Any partial payment of money from you, subject
prepayment will not excuse or reduce to the terms of the "Set-Off"
any later scheduled payment until paragraph herein.
this note is paid in full unless, (3) You may demand security,
when I make the prepayment, you and additional security, or additional
I agree in writing to the contrary). parties to be obligated to pay this
INTEREST: Interest accrues on the note as a condition for not using
principal remaining unpaid from time any other remedy.
to time, until paid in full. If I (4) You may refuse to make advances
receive the principal in more than to me or allow purchases on credit
one advance, each advance will start by me.
to earn interest only when I receive (5) You may use any remedy you have
the advance. The interest rate in under state or federal law.
effect on this note at any given By selecting any one or more of
time will apply to the entire these remedies you do not give up
principal advanced at that time. your right to later use any other
Notwithstanding anything to the remedy. By waiving your right to
contrary, I do not agree to pay and declare an event to lie a default,
you do not intend to charge any rate you do not waive your right to later
of interest that is higher than the consider the event as a default if
maximum rate of interest you could it continues or happens again.
charge under applicable law for the COLLECTION COSTS AND ATTORNEY'S
extension of credit that is agreed FEES: I agree to pay all costs of
to here (either before or after collection, replevin or any other or
maturity). If any notice of interest similar type of cost if I am in
accrual is sent and is in error, we default. In addition, if you hire an
mutually agree to correct it, and if attorney to collect this note, I
you actually collect more interest also agree to pay any fee you incur
than allowed by law and this with such attorney plus court costs
agreement, you agree to refund it to (except where prohibited by law), To
me. the extent permitted by the United
INDEX RATE: The index will serve States Bankruptcy Code, I also agree
only as a device for setting the to pay the reasonable attorney's
rate on this note. You do not fees and costs you incur to collect
guarantee by selecting this index, this debt as awarded by any court
or the margin, that the rate on this exercising jurisdiction under the
note will be the same rate you Bankruptcy Code.
charge on any other loans or class WAIVER: I give up my rights to
of loans to me or other borrowers. require you to do certain things, I
ACCRUAL-METHOD: The amount of will not require you to:
interest that I will pay on this (1) demand payment of amounts due
loan will be calculated using the (presentment);
interest rate and accrual method (2) obtain official certification of
stated on page 1 of this note. For nonpayment (protest);
the purpose of interest calculation, (3) give notice that amounts due
the accrual method will determine have not been paid (notice of
the number of days in a "year." If dishonor);
no accrual method is stated, then (4) give notice of intent to
you may use any reasonable accrual accelerate; or
method for calculating interest. (5) give notice of acceleration.
POST MATURITY RATE: For purposes of I waive any defenses I have based on
deciding when the "Post Maturity suretyship or impairment of
Rate" (shown on page 1) applies, the collateral.
term "maturity" means the date of OBLIGATIONS INDEPENDENT: I
the last scheduled payment indicated understand that I must pay this note
on page 1 of this note or the date even if someone else has also agreed
you accelerate payment on the note, to pay it (by, for example, signing
whichever is earlier. this form or a separate guarantee or
SINGLE ADVANCE LOANS: If this is a endorsement). You may xxx me alone,
single advance loan, you and I or anyone else who is obligated on
expect that you will make only one this note, or any number of us
advance of principal. However, you together, to collect this note. You
may add other amounts to the may do so without any notice that it
principal if you make any payments has not been paid (notice of
described in the "PAYMENTS BY dishonor). You may without notice
LENDER" paragraph below. release any party to this agreement
MULTIPLE ADVANCE LOANS: If this is a without releasing any other party.
multiple advance loan, you and I If you give up any of your rights,
expect that you will make more than with or without notice, it will not
one advance of principal. If this is affect my duty to pay this note. Any
closed end credit, repaying a part extension of new credit to any of
of the principal will not entitle me us, or renewal of this note by all
to additional credit. or less than all of us will not
PAYMENTS BY LENDER: If you are release me from my duty to pay it.
authorized to pay, on my behalf, (Of course, you are entitled to only
charges I am obligated to pay (such one payment in full.) I agree that
as property insurance premiums), you may at your option extend this
then you may treat those payments note or the debt represented by this
made by you as advances and add them note, or any portion of the note or
to the unpaid principal under this debt, from time to time without
note, or you may demand immediate limit or notice and for any term
payment of the charges. without affecting my liability for
SET-OFF: I agree that you may set payment of the note. I will not
off any amount due and payable under assign my obligation under this
this note against any right I have agreement without your prior written
to receive money from you. approval.
"Right to receive money from you" FINANCIAL INFORMATION: I agree to
means: provide you, upon request, any
(1) any deposit account balance I financial statement or information
have with you; you may deem necessary, I warrant
(2) any money owed to me on an item that the financial statements and
presented to you or in your information I provide to you are or
possession for collection or will be accurate, correct and
exchange; and complete.
(3) any repurchase agreement or NOTICE: Unless otherwise required by
other nondeposit obligation. law, any notice to me shall be given
"Any amount due and payable under by delivering it or by mailing it by
this note" means the total amount of first class mail addressed to me at
which you are entitled to demand my last known address. My current
payment under the terms of this note address is on page 1. 1 agree to
at the time you set off. This total inform you in writing of any change
includes any balance the due date in my address. I will give any
for which you properly accelerate notice to you by mailing it first
under this note. class to your address stated on page
If my right to receive money from 1 of this agreement, or to any other
you is also owned by someone who has address that you have designated.
not agreed to pay this note, your
right of set-off will apply to my
interest in the obligation and to
any other amounts I could withdraw
on my sole request or endorsement.
Your right of set-off does not apply
to an account or other obligation
where my rights are only as a
representative, It also does not
apply to any Individual Retirement
Account or other tax-deferred
retirement account.
NOTE ADDENDUM
TO subparagraph (1) of the Default paragraph
"...and such failure shall continue for a period often (1U) calendar days after
the giving of written notice by the Lender to the Borrower of such event;
provided, however the Lender hereof shall not be required to give such notice or
an opportunity to cure more than twice during any twelve (12) consecutive month
period during the term of the loan."
