DESCRIPTION
OF EXISTING INDEBTEDNESS. A
Promissory Note dated August 12, 2005, in the principal amount of
$1,500,000.00.
DESCRIPTION
OF COLLATERAL. Existing
collateral remains as described in the original promissory note in addition
to
other collateral that may secure this indebtedness, all the terms and conditions
of which are hereby incorporated and made part of the Agreement.
DESCRIPTION
OF CHANGE IN TERMS. The
maturity date on the Promissory Note has been extended to March 3, 2007, at
which time all outstanding
principal and accrued interest shall be due and payable in full.
PAYMENT.
Borrower will pay this loan in full immediately upon Lender's demand. If no
demand is made, Borrower will pay this loan in one payment
of
all
outstanding
principal
plus all accrued
unpaid interest
on March 3,
2007.
In
addition, Borrower
will
pay
regular
monthly payments
of all accrued unpaid interest due as of each payment date, beginning February18, 2007, with all subsequent interest payments to be due on the same day of
each month after that.
VARIABLE
INTEREST RATE. The
interest rate on this loan is subject to change from time to time based on
changes in an independent index which is the
National Prime Rate as published in the Money Section of the Wall Street Journal
(the "Index"). The Index is not necessarily the lowest rate charged by
Lender
on its loans. If the Index becomes unavailable during the term of this loan,
Lender may designate a substitute index after notifying Borrower.
Lender
will tell Borrower the current Index rate upon Borrower's request. The interest
rate change will not occur more often than each day. Borrower understands that
Lender may make loans based on other rates as well. The
Index currently is 8.250% per annum. The
interest rate to be applied to the unpaid principal balance during this loan
will be at a rate of 2.000 percentage points over the Index, resulting in an
initial rate of 10.250% per annum. NOTICE: Under no circumstances will the
interest rate on this loan be more than the maximum rate allowed by applicable
law.
CONTINUING
VALIDITY. Except
as
expressly changed by this Agreement, the terms of the original obligation or
obligations, including all agreements evidenced or securing the obligation(s),
remain unchanged and in full force and effect. Consent by Lender to this
Agreement does not waive Lender's right to strict performance of the
obligation(s) as changed, nor obligate Lender to make any future change in
terms. Nothing in this Agreement will constitute a satisfaction of the
obligation(s). It is the intention of Lender to retain as liable parties all
makers and endorsers of the original obligation(s), including accommodation
parties, unless a party is expressly released by Lender in writing. Any maker
or
endorser, including accommodation makers, will not be released by virtue of
this
Agreement. If any person who signed the original obligation does not sign this
Agreement below, then all persons signing
below acknowledge that this Agreement is given conditionally, based on the
representation to Lender that the non-signing party consents to the
changes
and provisions of this Agreement or otherwise will not be released by it. This
waiver applies not only to any initial extension, modification or release,
but
also to all such subsequent actions.
PRIOR
TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF
THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES
TO THE TERMS OF THE AGREEMENT.
BORROWER:
GABRIEL
TECHNOLOGIES, LLC
GABRIEL
TECHNOLOGIES CORP., Manager of GABRIEL TECHNOLOGIES, LLC
