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¡flff '1:4 If DEBTOR defaults in the payment of this note or in the performance of any obligation in any instrument securing collateral to it, or in the observance of any conditions of this Agreement, DEBTOR will be subject to the terms of Article 3 below. 1.5 Interest on the debt evidenced by this note will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest ~n excess of that max~mum 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 will 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 condition supersedes all other conditions in this and all other instruments pertaining to the debt owed. DEBTOR is responsible for the performance of all obligations contained in this note. ARTICLE 2 ECONOIUC DEVELOPIŒN'l' CONTRACT PROVISIONS 2.1 DEBTOR'S RESPONSIBILITIES 2.1.1 DEBTOR certifies that, at the present time, it is a small business with no more than 25 employees or no more than a one million dollar annual payrollr and that it is located within the corporate City limits or CITY sales tax jurisdiction. ~ DEBTOR agrees to: 2.1.2 Utilize $30,000.00 from the total loan funds for the purpose of equipment and machinery repair and the remaining $45,000.00 as working capital. 2.1.3 Repay the loan in accordance with the terms of Article 1 Equipment Lien Note, included as part of this Agreement. -- 2.1.4 Create within 60 days of the date of this Agreement, and maintain throughout the term of this Agreement, nine seasonal jobs the working hours for which shall be equivalent to nine full time jobs at DEBTOR's San Marcos location. Each full-time job equivalent shall be 1,820 working hours during a calendar year. Of these nine full-time job equivalents, six will be provided to low and moderate income persons. 2.1.5 Invest a minimum of $42,350.00 of funds from other private sources in inventory to leverage this Project and provide documentation of this private investment. 2.1.6 Provide CITY with annual audited financial statements within ninety (90) days of DEBTOR'S fiscal year end.