1
EXHIBIT 10.6
[LETTERHEAD]
SURREY, INC.
13110 TRAILS END ROAD, LEANDER, TEXAS 78641
(512) 267-7172
FAX 512-267-4864
PROMISSORY NOTE
Date: March 11, 1996
Maker: Surrey, Inc.
Makers Mailing Address: 13110 Trails End Rd.
Leander, TX 78641
Payee: John B. van der Hagen and Mary A. van der Hagen
Place for Payment: 12901 Lost Ridge Circle
Leander, TX 78641
Principal Amount: $100,000.00
Annual Interest Rate on Unpaid Principal from Date: 12% per annum
Terms of payment (principal and interest); Principal and interest are due and
payable in monthly installments of $2,000.00 each beginning April 11, 1996 and
continuing until all principal and interest are paid in full.
Maker may repay all or any part of the principal of this note before maturity
without penalty, and interest shall immediately cease to accrue on any amount
so prepaid. Partial payments shall be credited to principal, and installments
shall continue as scheduled. Maker promises to pay to the order of Payee at
the place of payment and according to the terms of payment the principal amount
plus interest at the rate stated above. All unpaid amounts shall be due by the
final scheduled payment date.
2
(2)
If maker defaults in the payment of this note, and the default continues after
Payee gives Maker notice of the default and the time within which it must be
cured, as may be required by law or by written agreement, then Payee may
declare the unpaid principal balance and the earned interest on this note
immediately due. Maker and each surety, endorser, and guarantor waive all
demands for payment, presentations for payment, notices of intention to
accelerate maturity, notices of actual acceleration of maturity, protests and
notices of protest.
If this note is given to an attorney for collection, or if suit is brought for
collection, or if it is collected through probate, bankruptcy, or other
judicial proceedings, then Maker shall pay Payee all costs of collection,
including reasonable attorney's fees and court costs, in addition to other
amounts due. Reasonable attorney's fees shall be at least 10% of all amounts
due unless either party pleads otherwise.
Interest on the debt evidenced by this note shall not exceed the maximum amount
of non-usurious interest that may be contracted for, taken, reserved, charged,
or received under law; any interest in excess of that maximum amount shall be
credited on the principal of the debt or, if that has been paid, refunded. On
any acceleration or required or permitted prepayment, any such excess shall be
cancelled automatically as of the acceleration or prepayment or, if already
paid, credited on the principal of the debt or, if the principal of the debt
has been paid, refunded. This provision overrides other provisions in this and
all other instruments concerning the debt.
Maker may prepay this note in any amount at any time before maturity without
penalty. Any prepayment should be applied first toward the payment of accrued
interest and next to the principal installments of the note, if any, in the
inverse order of maturity.
3
(3)
Each Maker is responsible for all obligations represented by this note.
When the context requires, singular nouns and pronouns include the plural.
The parties hereby agree that in the event of any dispute regarding the terms
of this note, venue shall be in Travis County, Texas.
SURREY, INC.
By /s/James K. Olson
---------------------------
James K. Olson
Its Chief Executive Officer