Common use of Term and Interest Rate Clause in Contracts

Term and Interest Rate. The Principal shall be due and payable to the holder hereof twelve (12) months from the date of the receipt of each individual payment by the Lender to the Borrower with respect to each individual payment amount described in Paragraph 1 above. For example: Borrower shall owe Lender $100,000, plus the respective accrued interest on that amount, on March 2, 2008. This payment of principal and interest by Borrower to Lender will constitute the first repayment due pursuant to this Agreement. The holder hereof may at its election extend the term of this Note for successive twelve (12) month periods upon written notice thereof to the Borrower, or may aggregate all of the separate payment and interest amounts into one renewal with one expiration date, but only upon the written request of the Lender. Interest on this Note shall accrue from the date of payment of each individual payment amount within the total of the Principal paid to the Borrower at the rate of ten percent (10%) per annum, calculated and compounded monthly, until paid. Interest shall be due and payable to the Lender at the end of the term of this Note. However, in the event of default, interest shall accrue at the rate of fourteen percent (14%) per annum, calculated and compounded monthly, from the date of default.