The Loan shall be repaid in full no later than two (2) years from the Disbursement Date (the Maturity Date). Unless earlier forgiven in whole or in part, subject to and in accordance with the Forgiveness Guidelines described (and defined) below, the Borrower shall begin making monthly payments of principal in equal installments in an amount that would fully amortize the Loan by the Maturity Date, plus interest, in arrears, calculated based upon the original principal amount of this Note until the date of any forgiveness and on the remaining outstanding principal balance thereafter, and a per annum interest rate of one percent (1.00%) beginning seven months from the month of the Disbursement Date; payments must be made on the date in the months they are due that corresponds to the date in the month on which proceeds were initially disbursed or, if no such corresponding date, on the next succeeding business day. Interest shall accrue, and be due and payable from, the date of initial disbursement of the Loan. The interest rate wig it be changed during the life of the loan. Borrower hereby authorizes Lender automatically to deduct from any deposit account(s) of Borrower with Lender, the amount of any payment due under this Note. Lender will apply each installment payment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal.
4. USE OF PROCEEDS:
Proceeds of the Loan must be (1) paid or disbursed by Borrower within eight (8) weeks of the date of initial disbursement of the Loan and (2) used solely for the following purposes (the Permitted Purposes):
| ||B. || ||costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; |
| ||C. || ||mortgage interest payments (but not mortgage prepayments or principal payments); |
| ||E. || ||utility payments; in each case of C through E, to the extent the same were incurred in connection with agreements in effect before February 15, 2020; |
| ||F. || ||interest payments on any other debt obligations that were incurred before February 15, 2020; and/or |
| ||G. || ||refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020. |
5. LOAN FORGIVENESS:
The principal amount of the Loan may be forgiven, in-whole or in part, in accordance with the CARES Act, as may be amended from time to time and modified or supplemented pursuant to any regulatory or administrative regulations, guidance, or interpretations issued by the SBA from time to time (collectively, the Forgiveness Guidelines). Any such forgiveness shall be conditioned upon Borrower providing to Lender in a timely manner all documentation required under the Forgiveness Guidelines or otherwise requested by Lender supporting Borrowers request for loan forgiveness, including documentation to determine whether the forgiven amount must be reduced in accordance with the Forgiveness Guidelines. The final amount of loan forgiveness, if any, shall be determined by Lender in Lenders discretion in accordance with, and to the extent not expressly prohibited by, the Forgiveness Guidelines. Not more than twenty-five percent (25%) of the amount forgiven shall be attributable to non-Payroll Costs. Borrower has received an EIDL (Economic Injury Disaster Loan) advance in the amount of $0.00. That amount will be subtracted from the loan forgiveness amount.
6. OTHER INDEBTEDNESS:
This Note is considered permitted indebtedness, howsoever defined, under any other loan evidenced by any promissory note or credit agreement solely between Borrower and Lender (whether currently in effect or hereafter entered into; each, a Credit Agreement). Notwithstanding any provision in any other Credit Agreement solely between Borrower and Lender or this Note, any collateral or guarantees for other obligations of Borrower to Lender shall not apply to the indebtedness evidenced by this Note.
7. BORROWERS AGREEMENTS:
Borrower acknowledges and agrees that (1) Borrower has and shall maintain in full force and effect through the Maturity Date or prior satisfaction in full of this Loan, and shall provide evidence of the same to Lender upon Lenders request therefor, the following: liability insurance; other insurance of the type typically maintained by companies in the same or similar lines of business as Borrower; and workers compensation insurance; in each case, with an insurance company satisfactory to Lender and, with respect to workers compensation insurance,