Exhibit 10.61
PROMISSORY NOTE
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$225,000.00 Los Angeles, California
October 15, 1997
FOR VALUE RECEIVED, XXXXXXXX X. XXXXX (the "Borrower"), promises to
pay to the order of UNITED PANAM FINANCIAL CORP., its successors and assigns
(the "Lender") at 1999 Avenue of the Stars, Xxxxx 0000, Xxx Xxxxxxx, Xxxxxxxxxx
00000 or at such other place as might be designated in writing by the Lender,
the principal sum of Three Hundred Thousand Dollars ($225,000.00) or so much
thereof as remains unpaid, together with interest thereon at a fixed rate equal
to Five and Eighty-One One Hundredths Percent (5.81%) per annum. Interest will
be calculated on the basis of the actual days elapsed based on a per diem charge
computed over a year composed of three hundred sixty (360) days.
Principal and interest will be payable as follows: Interest from the
date hereof on the outstanding amount of the Note will be payable annually on
October 15 of each year beginning with October 15, 1998. On October 15, 2000,
the entire unpaid principal balance and all accrued but unpaid interest thereon
will be due and payable.
The Borrower will have the right at any time and from time to time to
prepay the unpaid principal balance of this Note, in whole or in part, without
penalty, but with interest on the unpaid principal balance accrued to the date
of prepayment.
The Borrower agrees that if, and as often as, this Note is placed in
the hands of an attorney for collection or to defend or enforce any of the
Lender's rights under this Note or otherwise relating to the indebtedness hereby
evidenced, the Borrower will pay the Lender's reasonable attorneys' fees, all
court costs and all other expenses incurred by the Lender in connection
therewith. At the option of the Lender, after the failure of the Borrower to
pay any such sum hereunder within thirty (30) days of the date due, the unpaid
balance of this Note will bear interest at Ten Percent (10.0%) per annum.
During the existence of any default, the Lender may apply payments received on
any amount due hereunder or under the terms of any instrument now or hereafter
evidencing or securing payment of this indebtedness as the Lender determines
from time to time.
This Note is issued pursuant to a Loan and Stock Pledge Agreement of
even date herewith (the "LOAN AGREEMENT") and is secured by the security
interests described therein. Upon the breach by the Borrower of any provision
of this Note or of the Loan Agreement, or upon termination of Borrower's
employment by Xxxxxx as provided in the Loan Agreement, or occurrence of any
other default or event of default respecting this Note, the Loan Agreement or
any other instrument now or hereafter evidencing or securing the indebtedness
represented
hereby, at the option of the Lender the entire indebtedness evidenced by this
Note shall become immediately due, payable and collectible as the Lender may
elect, regardless of the date of maturity of this Note.
This Note is issued by the Borrower and accepted by the Lender
pursuant to a lending transaction negotiated, consummated and to be performed in
California. This Note is to be construed according to the internal laws of the
State of California.
The makers, endorsers, sureties, guarantors and all other persons who
might become liable for all or any part of this obligation severally waive
presentment for payment, protest and notice of nonpayment. Such parties consent
to any extension of time (whether one or more) of payment hereof, release of all
or any part of the collateral securing payment hereof or release of any party
liable for the payment of this obligation. Any such extension or release may be
made without notice to any such party and without discharging such party's
liability hereunder.
This Note is intended to strictly conform with all usury laws to the
extent applicable to the transactions contemplated hereby. The provisions of
this Note and of all agreements between the Borrower and the Lender are hereby
expressly limited so that in no contingency or event whatsoever, shall the
amount contracted for, charged, paid or agreed to be paid to the Lender for the
use, forbearance or retention of money or credit hereunder or otherwise exceed
the maximum rate permitted by law therefor. If, from any circumstance
whatsoever, performance or fulfillment of any provision hereof or of any
agreement between the Borrower and the Lender shall, at the time of the
execution and delivery thereof, or at the time or performance of such provision
shall be due, involve or purport to require any payment in excess of the limits
prescribed by law, the obligation to be performed or fulfilled shall be reduced
automatically to the limit prescribed by law without the necessity of the
execution of any amendment or new document.
IN WITNESS WHEREOF, the Borrower has executed this instrument
effective the date first above written.
/s/ XXXXXXXX X. XXXXX
__________________________________
XXXXXXXX X. XXXXX
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