Common use of Stipulated Terms Clause in Contracts

Stipulated Terms. The purchase price for any Warrant Shares purchased pursuant to this Agreement shall be paid either in cash or by a cash down payment and the delivery of a secured promissory note, at the option of the purchaser. If the purchase is made for any reason other than the death of the Employee, the down payment shall equal at least twenty percent (20%) of the purchase price. If the purchase is made because of the death of Employee, the down payment shall equal not less than the greater of twenty percent (20%) of the purchase price or the full amount of the net proceeds from any insurance policies maintained by the Corporation on the life of the Employee. Any promissory note shall provide for equal quarterly installments of principal over a term not to exceed five (5) years, and shall bear interest at the rate of seven (7%) percent. Accrued interest shall be payable quarterly commencing with the first installment of principal. The note shall be subject to prepayment in whole or in part at any time and without penalty. In the event of default in payment of any installment when due, the whole sum of the principal and interest shall become immediately due and payable at the option of the holder. Notwithstanding anything herein to the contrary, if the purchase price is less than $10,000.00 the entire purchase price shall be paid in cash at closing.